This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Another Soft Jobs Number

Updated from 10:08 a.m. EST

The U.S. economy's ability to produce jobs continued to disappoint in January, with the Labor Department saying Friday nonfarm payrolls grew by 146,000 last month. The number sparked a bond rally as traders wagered that growth would be restrained in the third full year of economic recovery.

The rise in bond prices was briefly halted when Alan Greenspan was quoted from London saying that the U.S. trade deficit could narrow if the dollar remains weak. It has since resumed.

The Labor Department report was mixed, with the unemployment rate falling to 5.2% in January from 5.4% in December. Economists expected the economy to add 200,000 jobs and for unemployment to hold steady at 5.4%.

"We still can't seem to be able to create a significant number of jobs," said Steven Wood, chief economist with Insight Economics. "If we can't accelerate the number of jobs that we're creating, we're going to have difficulty generating income for workers, and that means that consumer spending is likely to slow and that economic growth this year is probably going to be slower than last year.

"At some point, that means the Fed is going to have to stop raising rates, but probably not before the middle of the year," Wood added.

But Richard Yamarone, chief economist with Argus Research, noted that the Labor Department's so-called household survey firmed in January, indicating strengthening employment in small businesses that don't show up the larger and better-known payroll sample.

"We've accepted the fact that growth is decelerating, and we expect the rest of the year to have 150,000 to 175,000 a month," said Richard Yamarone, chief economist with Argus Research. "We suspect also that activity will be very choppy, but that's why we talk about averages. It's not a surprise, and you've got to remember the economy is creating jobs, just not the payroll type.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs