President Trump hinted as much earlier in the week as today’s jobs numbers were stellar, easily beating estimates by almost 2mm for the month of July for jobs added. Unemployment was down and earning were up. Not what the Democrats want to hear of course.
However, the even bigger news of the last 24 hours is the executive orders President Trump is signing to go after the communist party in China. The White House Trade Advisor Peter Navarro said yesterday Trump will soon sign an EO to force the American government to only buy American products. This will be a big hit to Chinese imports, and provide a demand base from which American pharmaceutical production can rebound, reversing our dependence on Beijing for medical supplies.
The President also signed an order to force the sale of Chicom malware Tik Tok, banning American companies from dealings with the parent company ByteDance and WeChat’s Tencent in 45 days. This has really roiled the communists who in all irony are threatening legal action.
Trump also is delisting Chinese companies from American trading exchanges who don’t follow U.S. accounting rules. Why this was not done long ago is an enigma (but we know why don’t we? Congress loves those Beijing billions).
Other news affecting financial markets this morning is the continuing delay by Dems to agree to another stimulus package bill for Chinese coronavirus.
Markets are down slightly on the open as we write.
Nonfarm Payrolls (Jul) printed at 1763 vs 1600 consensus estimate.
Average Hourly Earnings (YoY) (Jul) printed at 4.8% vs 4.2% estimated.
Average Weekly Hours (Jul) printed at 34.5 vs 34.4 estimate.
Labor Force Participation Rate (Jul) printed at 61.4$ vs 61.1% estimate.
Average Hourly Earnings (MoM) (Jul) printed at 0.2% vs -0.5% estimate.
U6 Underemployment Rate (Jul) printed at 16.5% vs 19.7% estimate.
Unemployment Rate printed at 10.2% vs 10.5% estimate.