Downbeat Jobs Data Pressure Stocks
Major indexes in the stock market fell this week. Despite 90000 plus jobs created this month, stocks had a hard time keeping up with analyst expectations. Experts contribute the bearish week in the market on a combination of record high closing prices for oil, job growth falling about 60000 jobs short of estimates, and a slip in consumer confidence. Like a regression analysis: log stock market= b0 +b1log oil price+ b2 (estimated job growth – actual job growth) + b3 log consumer confidence + u, experts suggest these three variables are greatly responsible for the lack of performance this week.
The anticipation for a growing market may back fire causing large sell offs if anticipated oil prices and job rates don’t reach their suggested levels.