SFY - The Good News On The Jobs Front Is Mostly Buried

• Despite the lowball jobs total on Friday, plenty of good news is buried in the small print, like massive revisions to the previous two months.
• In addition, Hurricane Ida may have suppressed reporting of August payroll data. There are some more clues in the ADP reported last Wednesday, which counted 374,000 private payroll jobs created in August, far more than the Friday totals.
• In the wake of the apparently disappointing August payroll report, the Fed will have plenty of reasons to delay tapering QE at their next FOMC statement on September 22. One indication of that fact is that Treasury bond yields “spiked” after the Friday payroll report was released.
• However, the hawks on the FOMC are alarmed over higher inflation and they know the Fed cannot fight market rates forever. As a result, the upcoming September FOMC statement will be closely scrutinized.

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