Job growth was weaker than expected by Wall Street economists, who were forecasting gains of about 174,000, according to a survey conducted by MarketWatch. See Economic Calendar.
Job growth in April and May was revised up by 3,000.
Expectations for a strong job increase rose earlier this week after the ADP employment index showed an increased of 368,000 jobs in June, the most in its five-year history. See full story.
There was a strong reaction to the report in financial markets. Stock futures spikes higher, Treasury yields fell and the dollar fell in currency trading. See full story.
Josh Shapiro, chief U.S. economist at MFR Inc., said the June report "comes down a little on the "FOMC pause" side of the ledger, although it is not a clear-cut judgment given some of the details."
What is clear-cut is that the ADP-driven rise in expectations of another funds-rate hike in August was largely reversed by today's report. Tomorrow's Cleveland Fed market probability estimates today:
