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JPM: Jobs Report No "Knockout" But Wont Stall Nov Taper Annc

US OUTLOOK/OPINION
JPM notes while the Sep jobs gain missed expectations (+194k vs. +500k est), total up-revisions for July-Aug of +169k, "a strong increase in average hourly earnings (0.6%), and a move up in the average workweek (to 34.8 hours)" should keep the Fed on track for a taper annc at the November FOMC.
  • JPM cites "two important (and likely related) themes evident in the latest jobs report. First, the summer's surge in virus cases appears to have restrained activity and demand in some of the most related sectors.
  • And second, limits to labor supply continue to appear to be boosting earnings and perhaps restraining job growth. With the number of new COVID cases declining lately, we think the related drag could abate over time."

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