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Is higher unemployment going to screw up corporate earnings? I’m going live today at 2:00 PM EST to share an incredible trade strategy (88% win rate historically) for this messy market. Claim a free RSVP here.
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Friday, March 7th
An empire founded by war has to maintain itself by war.
-Montesquieu
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Markets Today
🌏 Asia-Pacific: Down
🇪🇺 Europe: Down
🇺🇸 United States: Down
🛢️ Oil: Up
⚡Crypto: Down
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Major Market Events
- Broadcom stock jumps as AI growth fuels upbeat forecast
- US Energy Chief Plans to Seek $20 Billion to Refill Oil Reserve
- Tariff deadline set off spike in cross-border trucking rates, data shows
🤔 My Thoughts
Today’s crucial jobs report came in lower than expected…
With the unemployment rate rising to 4.1% amid heightened investor fears over the trajectory of the US labor market and the broader economy.
Data from the Bureau of Labor Statistics released Friday showed 151,000 new jobs were created in February, less than the 160,000 expected by economists but more than the 125,000 seen in January.
The unemployment rate rose to 4.1% from 4% in the prior month. January’s monthly job gains were revised lower from a previous reading of 143,000.
Of course this isn’t just natural labor market cycles…
A big part of this is the 10,000+ jobs already cut from the federal government by Elon Musk’s DOGE initiative…
And DOGE is signifying that they want to cut 100,000 or more from here.
These federal jobs are higher-paying white collar work, so this will have a bigger impact on the economy than jobs that are seasonal or lower-paying.
Many analysts are saying that things aren’t that bad, and this is just a modest spike in unemployment…. but we think that’s wrong, in light of the more government cuts to come.
So what’s the punch line here?
Well higher unemployment means less consumer spending…
And less consumer spending could be real bad news for corporate earnings in major consumer stocks like McDonalds and Walmart.
Which is potentially GREAT news for my earnings strategy that can actually do better when earnings fall in markets like this.
I’m going to share exactly how it works at 2:00 PM EST. You can claim a free RSVP right here.
