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Bad Jobs Report and Dow Drops 103 Points

Today the Bureau of Labor Statistics reported that the economy added 169 thousand jobs in August this is below the expectation of 177 thousand. As a result the Dow dropped 103 points at 9:50 Am.

According to the BLS, the unemployment rate decreased to 7.3%. So where were the jobs created? Most jobs were created in retail and health care, so not the most high paying jobs. This has been the situation for a while.  Moreover, the long term unemployment number remained unchanged last month.

In addition to health care and retail, we also saw increases in the leisure and hospitality industry and food services. Keeping with the boom in the auto industry, employment at motor vehicles and parts industry rose 19,000.

So overall this is not good news for the economy but it might be good news for the markets, it means the fed is likely to continue stimulating the economy.  So why the long face on Wall Street?