Big Fail: US Non-Farm Payroll Adds 49,000 Jobs in January; December Revised To -227,000

The US economy is in really (fill in blank with appropriate reality) shape.

According to the stock market, things could not be better. The S&P 500 and NASDAQ each closed at new all-time highs, while the Dow Industrials and the NYSE Composite are each within one percent of breaking out to record heights, surpassing those made just a couple of weeks ago.

Meanwhile, back in the alternate universe some people call the "real world," the Labor Department released the jobs data from February, which had non-farm payrolls up just 49,000 versus +105,000 expected and a revised -227,000 for December, from the reported -140,000 in the original report. Somehow, it seems the irrational exuberance in the stock market has slipped over to the "real world" side as the unemployment rate fell to 6.3% versus 6.7% expected and 6.7% in December.

Astonishing developments!

While this blog and most of the world was focused on the antics of the Reddit crew from r/wallstreetbets, the price of GameStop (GME) stock and the divergence in the price of physical silver from the COMEX and LBMA spot price, there were other developments elsewhere in the world of finance.

We've heard that Google and Amazon and most of the Big Tech giants posted knockout fourth quarter 2020 results. There's also been significant, perhaps troubling developments in the bond market.

The 10-year note is quoted this morning with a yield of 1.17%. The 30-year note closed Thursday at 1.93%. That's a 12-month high yield for the 30, (1.97%, 2/20/20) and an 11-month high for the 10-year (1.18%, 3/18/20).

All of that leads into what looks to be a boffo opening for the stock market, with futures modestly higher. There's a big football game this weekend also, featuring the main participants being some old guy (Tom Brady) against a flashy kid (Patrick Mahomes). Maybe that's what's keeping the world spinning.

Being Friday, the staff left early (8:00 am ET?), so check back here Sunday morning for the WEEKEND WRAP and the SOSMPB (Single Ounce Silver Market Price Benchmark), which looks to be higher than the initial reading last Sunday of $37.60.

See you then...

At the Close, Thursday, February 4, 2021:
Dow: 31,055.86, +332.26 (+1.08%)
NASDAQ: 13,777.74, +167.20 (+1.23%)
S&P 500: 3,871.74, +41.57 (+1.09%)
NYSE: 14,975.43, +136.38 (+0.92%)