Why Wall Street cares about U.S. employment indicators?
Dear mooers, Sarge is back again to our live-streaming event. This time, we will discuss U.S. employment indicators - such as the U.S. unemployment rate, nonfarm payrolls, and initial jobless claims - and why they matter to Wall Street.
Many investors are familiar with employment indicators, but did you know why Wall Street cares about these indicators and how Wall Street and the market react to those figures? Have you heard a rule of thumb that more than 200,000 job gains historically mean the job market is strong, and less than 200,000 mean the job market is weak? Is it correct, and what will happen when the number comes in stronger or weaker than economists' forecast? Sarge will give us a rundown of these and his insights.
You are welcome to ask any questions related to this topic. Stephen will address your inquiries during the live broadcast. Submit a complete question under this post, and you'll receive 100 Moo points, plus another 1,000 if we use your question on air.
[Stephen's Full Bio]
Stephen "Sarge" Guilfoyle is the founder and President of Sarge986 LLC, a family-run trading operation. An NYSE floor trader for over 30 years, Guilfoyle has served as the Chief Market Economist for Stuart Frankel & Co., the U.S. Economist for Meridian Equity Partners, and as a Vice President in Block Trading and Investment Banking with Credit Suisse over the years. Guilfoyle earned his nickname "Sarge" while serving as an actual sergeant in reserve components of the U.S. Marine Corps and U.S. Army while simultaneously working on Wall Street. He self-identifies as a day trader, long-term investor, and anything. He believes in removing emotion from the decision-making process and trusting the data. Follow Stephen "Sarge" Guilfoyle on the moomoo community for a mix of fundamentals, technical analysis, economic commentary, and trading ideas.
Stephen "Sarge" Guilfoyle is the founder and President of Sarge986 LLC, a family-run trading operation. An NYSE floor trader for over 30 years, Guilfoyle has served as the Chief Market Economist for Stuart Frankel & Co., the U.S. Economist for Meridian Equity Partners, and as a Vice President in Block Trading and Investment Banking with Credit Suisse over the years. Guilfoyle earned his nickname "Sarge" while serving as an actual sergeant in reserve components of the U.S. Marine Corps and U.S. Army while simultaneously working on Wall Street. He self-identifies as a day trader, long-term investor, and anything. He believes in removing emotion from the decision-making process and trusting the data. Follow Stephen "Sarge" Guilfoyle on the moomoo community for a mix of fundamentals, technical analysis, economic commentary, and trading ideas.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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010Leo : I think employment figures give an indication whether the economy going into recession. it affects liquidity in the market. just wondered how they obtain these figures. how accurate are they?
mr_cashcow : Hello again, glad to see another live so that we can pick your brain![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Maybe you can help me better understand this concept![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
My question is with regard to the stock market's reaction to unemployment news, specifically why bad news is usually good for stocks? Many times I have trouble wrapping my head around this concept
Dadacai : Hi Sarge, how does the market respond to the statistics and how can short term and long term investors take advantage of the market response?
ZnWC : Thanks Sarge for your previous live streaming insight![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Here are my questions:
1. What types of stock are sensitive to employment indicators?
2. Previously it is reported that unemployment and jobless claims are high. Are these signs that the US economy is going into recession? Why?
3. Based on history, will the Fed cut interest (quantitative easing) when employment is high? Why?
102362254 : Question 1 - What are some common misconceptions about interpreting employment data?
Question 2 - Can you explain the difference between nonfarm payrolls and payroll employment?
Question 3 - What historical trends can we observe in market reactions to shifts in U.S. employment indicators, and how can investors leverage this information to make smarter trades?
Drift along : Will the number of people applying for unemployment benefits for the first time affect the stock market?
tankeng : can you explain why the rule of thumb is 20000 jobs is it a percentage of the working force?
BelleWeather : Sarge, I wish I could talk to you right now.
bright Hamster_2913 : are these lagging indicators of the market?
103115253 : hello Sarge, employment data usually presented quarterly, and the numbers are based on previous month data. do you think it is a lagging indicator? and what are your thoughts on the impacts for short term moomoo trader and long term moomoo investor?![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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