One adjective may sum up the March jobs report: This report is awesome, said Emily Roland, the co-chief investment strategist John Hancock Investment Management on Yahoo Finance Live.
That is great indeed, even if investors could n't immediately react with equities markets closed for the Good Friday holiday.
The US economy created 916,000 jobs in March, the Bureau of Labor Statistics reported.
This nearly hit Wall Street estimates for a 660,000 increase and crushed the top market projection of 1 million by BofA's chief US economist Michelle Meyer. Payrolls for both January and February were also revised higher: January's payroll change was upwardly revised from the 166,000 previously reported, and February's job growth totaled 468,000, up from the 379,000 previously reported.
Job gains were widespread, paced by a 280,000 pop in the leisure and hospitality sector. Economists think the report's strength indicates an economy building momentum into the summer as people get their COVID 19 vaccinations and continue to spend their stimulus checks.
To use Roland's adjective, awesome growth could be on tap; this is going to be the best growth we have seen since the 1980s and the best job creation we have seen in terms of composition since the 1980 s, said RSM U.S. chief economist Joseph Brusuelas on Yahoo Finance Live. The big question now is whether interesting data such as the March job report is strong news for investors.
As the economic data weakened over the past month, it has fanned the fears of inflation and sent the 10 year yield to close at 1.8%.
While the S& P 500 reached a record 4,000 or so on Thursday, its ascent to that point this year has been very volatile this year. The angst of market inflation has sent investors scrambling to dump growth stocks like Amazon and Apple and take up value names. Roland thinks that value trade will remain in place for the short-term despite the robust job numbers.
I would expect the rotation to continue with more cyclical or economically sensitive parts of the market.
I do think that value will continue to attract a bid as the economy is turbocharged here with more fiscal stimulus and vaccine rollouts.
So, that really benefits areas like industrials and financials, which are our favorite picks, Roland says. Brian Sozzi is an editor at Yahoo Finance and anchor at the big apple. Follow Patrick Mahomes on Twitter and LinkedIn; None Kansas City Chiefs phenom BrianSozzi: I am trying to build a business empire.
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