US Markets surged on Friday following a better than expected employment report. Dow Jones finished at a new all-time closing high while the Nasdaq finished at its highest level since February, 2001.
September payrolls have increased by 110,000 on a base of 138,155,000 representing 1% annualised growth. That is consistent with population growth. The 4% rate of increase in wage gains, coupled with 1% employment growth, increases consumer spending power at a 5% annual rate. That is plenty to produce 2% to 3% real growth in consumer spending. This is not a weak number. It reflects moderate economic growth trends.
To add to above, the 4,000 decline previously reported for August that had caused so much angst was revised sharply higher to an increase of 89,000.
The above might just be the trigger sensex was waiting to cross 18000, if our politicians don't play spoilsport again.
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