Equity Investors Fade the BLS and Embrace More Fed Rate Cuts Ahead

When it comes to the economic message, Trump shoots the messenger

Highlights

• When it comes to the economic message, Trump shoots the messenger

• Retail buying and rate cut hopes fuel the stock market rebound

• S&P 500 earnings point to declining margins for most companies

• Swaps show a big jump in the odds for multiple rate cuts

Key Takeaways

• Trump Shoots the Messenger: The BLS Commissioner was fired by President Trump on Friday on the back of that huge -258k two-month downward revision to nonfarm payrolls. But all the revision did was affirm that the job numbers in May and June were grossly overstated, and every other employment statistic showed that it was nonfarm payrolls that was the odd man out.