After yesterday’s market sell off, and a tough session for foreign exchanges, the U.S. market got a much needed boost of confidence this morning from a better than expected report on U.S. payrolls.
According to the Labor Department this morning, American employers added twice as many new jobs as analysts had expected. Analysts had expected to see an increase of 85,000 payrolls during October, but the market was delighted to see an actual rise of 166,000 for the month. This is good news, and may help the market forget about the dreaded “R” word for a while (recession).
Housing is still weak, which many fear will push the country into a full blown recession, but with strong payroll months in both September and now October at least we have reason to hope a recession will not overtake the country.
The jobless rate remains at 4.7 percent.
What do you think? Is America headed towards a full blown recession, or can the Fed avoid one through more interest rate cuts?
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Yes, i think we are headed to recession. The Fed will not be able to fight it off this time
I agree, recession is on the way, expect it here by second quarter 2008