U.S. economy unexpectedly lost 23,000 jobs in July

Summary

Rick Santelli breaks down the July jobs report showing a surprise loss of 23,000 nonfarm payrolls, downward revisions, and soft wage growth. He highlights falling bond yields, reduced expectations for a September rate hike, and equities showing resilience.

• July nonfarm payrolls unexpectedly fell by 23,000, the second negative print of the year.
• Two-month payroll revisions were sharply negative at -103,000.
• Manufacturing payrolls added 5,000, the best since March.
• Average hourly earnings rose only 0.1% m/m, missing expectations.
• Year-over-year earnings growth fell to 3.2%, the lightest of the year.
• Unemployment rate held at 4.1% but participation rate fell to 61.4%.
• Bond yields dropped with the 10-year falling to 4.62%, and rate hike odds declined.
• Equities showed no negative reaction to the weak report.