Markets still managed to rally on Friday despite a disappointing jobs report. I guess this means that bad news can be good news!!

Markets still managed to rally on Friday despite a disappointing jobs report. I guess this means that bad news can be good news!! The dollar fell in response to the data and gold was able to see some gains throughout the day. The question to ask is when will we see a solid jobs report whose numbers are not biased towards the weather? We’ve already seen snowstorms in February so perhaps we will have to wait until March to get a better snapshot of the U.S. economy. It’s unlikely that the Fed is going to put tapering on hold. Perhaps the Fed would question its pullback effects if it saw weaker employment data and lower inflation rates down the road. The issue at hand is whether the economy is performing poorly because the recovery has become stagnant or because the snow storms have been slowing down manufacturing growth and people from job hunting. Economists would like to believe it’s because of the weather. If the weather is to be blamed then why did we see a decline in the unemployment rate? There are 2 reasons to consider: the unemployment benefits for 1.3 million Americans expired in December so people are actively seeking for jobs and getting hired while others are simply tired of looking for work and have exited the labor force. Have a great day!