The US labor market's relationship to S&P 500 earnings

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Labor Market News

Corporate Earnings,The Federal Reserve,Madison Mills

The labor market is a crucial factor in the Federal Reserve's decision-making process, particularly when it comes to interest rate adjustments. However, the ...

The labor market is a crucial factor in the Federal Reserve's decision-making process, particularly when it comes to interest rate adjustments. However, the labor market's influence extends beyond monetary policy, impacting both corporate earnings and investor portfolios.That's why we got all eyes on that September 6 jobs report.According to the Macro Institute, it is the most important driver of company earnings.

And you can see it's just about kind of that Venn diagram that turns into a circle here, right S and P 500 company forward earnings directly tied to those average weekly hours.The companies that are able to keep up their balance sheets and have strong earnings moving forward. Just a little bit of softness, a little bit of companies, uh, practising attrition, for example, slowing down on hiring.Moving forward into Q three.

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TORONTO — Trouble in BMO Financial Group's loan book has once again weighed on its quarterly results, prompting analyst worries about the bank becoming an outlier in this credit cycle.

 

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