Unemployment ticked up only slightly to 3.6% from 3.5%, “a very low level,” McMillan noted. “The average hours worked per week should tick up, another positive sign. Finally, monthly wage growth is anticipated to rise back to 0.3%, another positive. On balance, it will be good news for the economy and markets, as it will indicate continued growth after a slowdown last year.”
Mike Collins, managing director and senior portfolio manager at PGIM Fixed Income, agreed a positive future outlook has been created by the good numbers reported Friday, but he felt the coronavirus adds a large degree of uncertainty.
“This confirms that the U.S. is on sound footing for consumers and for the stock market, real estate and other sectors,” Collins said Friday. “It is all green lights for the U.S. right now, but we are not an island. Europe reported very weak numbers today, and there are concerns the effects of the coronavirus are just starting to spread across other countries.”
“More companies are issuing earnings warnings,” he added. “Everything is good for now, but we do not know what the next three or six months or year will bring. The numbers may reflect more downside than upside. … Or a week from now we may realize China has done a good job of containing the virus. A lot hinges on the virus.”