Breaking down the vacancies and Market expectations!
For the first time, US job vacancies passed the 10Million; what does it mean?
Inside the report, we have some interesting numbers. After the impressive performance of last week`s non-Farm Payroll Numbers, the US JOLTs job vacancies announced yesterday exceeded 10 million for the first time, reaching 10.073 million, exceeding market expectations of 9.270 million and the previous 9.509 million (pre-revision 9.209 million). The number of voluntary resignations also increased from 3.6 million to 3.9 million. The numbers telling us that the US corporate employers are still facing the difficulty of finding employees, and workers have also gained more substantial bargaining power and willingness to change jobs. On the other hand, rising labor costs will eventually end with the higher final price of products to cover the producer and service provider costs. Higher producer / Provider prices directly affect PPI and CPI for the same product or the service and products using the raw materials.
On the other hand Senate Democrats reach a $3.5 trillion budget agreement and announce that they are willing to pass without Republican supports. The budget includes:
Health, Education, Labor, and Pensions Committee: $726 billion
Banking Committee: $332 billion
Energy Committee: $198 billion for clean electricity
Agriculture Committee: $135 billion
Judiciary Committee: $107 billion
Commerce Committee: $83 billion
The Environment and Public Works Committee: $67 billion
Homeland Security Committee: $37 billion
Small Business Committee: $25 billion
Indian Affairs Committee: $20.5 billion
Veterans Affairs Committee: $18 billion
On the infrastructure bill front, some senators opposed the inclusion of cryptocurrency tax provisions (if passed, it may bring about 28 billion US dollars in revenue to the government) into the bill. However, Schumer, the leader of the majority Democratic Party, said that he "will not block the request to approve the amendment."
With remarkable economic data, market pricing more on Hawkish Federal Reserve policies in its next monetary policy meeting, later on, 21-22 September. Hawkish policies mean more pressure on the Stock market in the short and mid-term, and now with these Biden`s infrastructure plan and democrats Budget plan, the market will get supported with another $4.5Tm which is most likely will help the markets again to regain the short term losses or even to limit them.
Generally, stock investors favor this, especially in small cups, as most supportive budgets are about families, education, and small producers.
