BMO analysts said the August..........>

US DATA REACT: BMO analysts said the August employment report, which included a

156,000 nonfarm payroll employment gain, "was softer by any measure, although

the misprint by the newswires that showed July's AHE revised lower (subsequently

clarified to unrevised at +0.3%) confused the issue, to put it mildly." 

- They added "in the final count, headline payroll growth disappointed and was

accompanied by downward revisions totaling -41,000. The unemployment rate

unexpectedly ticked higher, while the participation rate was unchanged and wages

were softer than anticipated, but not as troubling as the phantom revisions

initially implied. The yearly change in total AHE was unchanged at 2.5% and for

non-supervisory workers, the pace was 2.3% -- both low and holding the broader

trend, but not pressing the lower bound." 

- They said "the absence of realized inflation, despite the moderate wage

growth, has been a topic of much debate and the perception that the Fed has

'moved-on' from the divergence arguably leaves the market less sensitive to the

slower pace."