MissionSquare CIO Urges Caution on October U.S. Jobs Report

According to Jin10, MissionSquare Chief Investment Officer Shari Hensrud said market expectations for the October U.S. employment report were modest, but its key figures should be treated cautiously. Three of the past four reports were revised down, reducing payrolls by a cumulative roughly 150,000 jobs, while average monthly job gains over the past three months were about 50,000. Hensrud also noted that Brent crude briefly approached $118 a barrel in October and long-term Treasury yields fell below 5%. She said these factors might not be fully reflected in the report, and their effects on hiring were expected to emerge in November and December. She added that the negative impact of higher energy costs could outweigh the improvement from lower borrowing costs.