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3 Reasons Today's Jobs Report Could Be A Monster

3 Reasons Today's Jobs Report Could Be A Monster

The official expectation for today's jobs report is 180K, but there are some signs that suggest it could be huge.

Here are 3.

The employment sub-index of the ISM Services report turned in a monster reading. And this sub-index often correlated with NFP well.

In this chart, the red line is the ISM services sub-index, which as you can see has exploded lately. It makes sense that this would have some decent predictive value, since services are such a huge part of the US economy.

NFPvsISMemploymentsubindex

FRED

Meanwhile, US auto sales (which have a decent track record of being correlated with employment) had their best month since the crisis.

And finally, initial jobless claims have fallen to their lowest level since the crisis.

fredgraph

FRED

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