By Bill Nelson
The September jobs report just released showed month-over-month jobs added in excess of 400,000, indicating a strong labor market with unemployment continuing to decline.
Not surprisingly, the Republican victory in the Kentucky and Tennessee gubernatorial races and the New Hampshire U.S. Senate race were among the primary drivers of the strong results. In terms of the judicial election in Florida, we predict a close race, but with a Republican victory. The governorship in Louisiana is also expected to go to a Republican, while the leadership of the U.S. House is also likely to be retained by the party. It is also possible the November ballot may include a test of the presidential trade dispute with China, with China responding with tariffs on a wide range of U.S. products.
Friday’s Jobs Report gives a strong confidence boost to the Federal Reserve policy rate. The US markets are likely to begin trading early on Monday, setting the stage for record-high single-day stock-market close, records for the S&P 500 and Dow Jones Industrial Average, and closing quarters for the Nasdaq Composite Index, the Russell 2000, and the Dow 30 Index.