The Friday job report is out and it is stronger than expected. The national unemployment rate dropped to 4.4 percent and non-farm jobs adding 180,000 in March plus January and February figures were increased. The average hourly earnings for workers rose in March compared with those a year earlier, to $17.22 an hour. The gains in weekly earnings were even stronger, up to $583.
So with a strong economy and wage growth which all should like, it may not be be received well for stocks as it means the Fed is unlikely to cut rates soon. It is weird of course. If the economy slows enough the fed could cut rates to stimulate the economy but if the economy is already to hot they won't. In fact they may in the future raise rates to fight inflation. Higher earnings though also mean consumers can spend more to help the economy.
We will only know Monday actually how this good news is taken.
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