Market shrugs at jobs report. US stimulus negotiations now the focus
Talks haven't gone anywhere
The non-farm payrolls report was better than expected but not a game-changer. Even with unemployment falling to 10.2% from 11.1%, that's still higher than any point in the financial crisis.
What's propping up consumption is a generous round of government benefits. However that expired at the end of July and we're now 7 days into August with no signs of a new deal.
Jake Sherman from Politico highlights to state of play today and he's growing more pessimistic. He highlights "the politics of walking away" and says it's not even clear there will be any meetings today.
For now, there won't be another Covid stimulus bill, and now both sides will have to figure out how to position themselves amid the rubble of what might be Congress' biggest swing and miss in a decade. Blame will fly.
I'm starting to get the sense that this deal is going to need some kicking and screaming from Wall Street before it gets done. There was hope that a soft jobs report would spark some compromise but was the opposite.