Another important U.S. jobs report this week will set the tone for the market, and Bank of America strategists say it's likely to push stocks further to record highs. “Risks are up, absent [a] “It was a huge failure,” the Wall Street firm said in a note to clients on Sunday. “We believe the data strengthens our outlook for a soft landing.'' Dow Jones estimates that the September jobs report, released Friday, will increase 144,000 jobs, up from 142,000 in August. Employment is expected to increase. The unemployment rate is expected to remain stable. Bank of America noted that it expects September payrolls to be slightly above consensus due to weak nonfarm employment data in July and August. With the unemployment rate at 4.2%, we believe “a slight economic downturn could be overlooked by investors, and only a sizable failure would reignite recession concerns. On the other hand, strong performance could lead to a soft landing.” “This could further boost confidence in the economy,” the central bank said. Central banks are trying to accomplish the difficult task of restoring price stability without triggering the painful rise in unemployment that has historically accompanied the fight against high inflation. The report said the SPDR S&P Regional Banking ETF (KRE) option is currently the most attractive given the employment data.
CHOOSE LANGUAGE
SELECT LANGUAGE BELOW
