Is Too Much Emphasis Placed on the Jobs Report?

I have enjoyed reading Dan Green's breakdown of how statistically insignificant the "misses" of the numbers are in light of the overall marketplace.  So, it begs to differ whether there is too much emphasis placed on these numbers.

However, whether or not those numbers are overemphasized, markets move dramatically on the news, either up or down.  Today, we see bonds dropping and, due to mortgage rate pricing, mortgage rates are moving higher on this morning's report.

Why?  Bonds do not like inflation and this data shows the potential for wage based inflation.  Also, they see the Fed's next move possibly being unchanged instead of another rate cut.  All of these "emotions" play into the markets.

Going back to my previous post about whether or not the Fed will regret cutting the rates, especially by 50 basis points, today's data certainly favors the fact the Fed may have hit the "panic button." It also raises questions as to what the Fed's next move will be at the end of the month.

In fact, sentient on Wall Street has moved from believing the Fed should cut rates again to that of the Fed having overreacted at their last meeting.  The Fed certainly has to be second guessing their last decision.

Let's look at another perspective.  That is one of some economy watchers that feel the Bureau of Labor Statistics create jobs out of thin air, then have to go back and do revisions.  They do not like the "guessing" due to the market reacting to today's data, which is likely not accurate.

So, going back to the original question, formulate your own opinion.  But, no matter how you feel, markets react to the numbers and to the revisions that come later and there is nothing we can do about it.