Schrödinger's labor market: ADP wallops expectations, adds 278,000 job in May (180,000 expected). Yet, initial jobless claims (232,000) are highest level since April. Nonetheless, wages are rising--adding more data for the justification for continued hike
https://fred.stlouisfed.org/series/ICSA
https://adpemploymentreport.com/
REMEMBER Fed Governors have had this to say about Employment/Labor/Wages:5/8/23: Chicago Fed President Austan Goolsbee:
6:10
The job market and the credit conditions those are the two main things we want to be looking at besides of course the prices themselves.
5/12/2023 Fed Governor Philip N. Jefferson:
- "Wage growth has continued to run ahead of the pace consistent with 2 percent inflation and current trends in productivity growth."
- "Wage gains are welcome as long as they are consistent with price stability."
TLDRS:
- Schrödinger's labor market: ADP wallops expectations, adds 278,000 job in May (180,000 expected).
- Yet, initial jobless claims (232,000) are highest level since April.
- The age growth data and jobs added are fuel for the Fed governor's to vote for continued rate hikes.
How does this relate to GameStop?
- The broader economy is seeing regional banks blow up at these rates, what sort of stress will higher rates cause in the banking system with those trying to maintain their short positions for another day?
