The U.S. economy added 390,000 jobs in May, the Labor Department reported this morning.
Economists had expected the economy to add 318.000 jobs for the month. In April the economy added a revised 436,000 jobs. The unemployment rate stayed steady at 3.6%. Economists had expected a drop to 3.5%.
Other figures showed a still strong and tight labor market, but one that might be slowing slightly. Average hourly earnings rose, month-over-month, by 0.3% against 0.3% in April with economists expecting a 0.4% increase. Year over year average hourly earnings rose by 5.2 in May versus a 5.5% annual increase in April.
Stocks pulled back today, June 3, on the news with the S&P 500 down 1.64% at the close and the Dow Jones Industrial Average off 1.04%. The NASDAQ Composite fell 2.47%.
Odds of a 50 basis point increase at the Federal Reserve’s June 15 meeting, already high, ticked up to 99.3% from 97.4% yesterday, according to the CME FedWatch Tool. Odds of a 50 basis point increase at the July 27 Fed meeting slid to 89.5% today from 90.1% yesterday.
The yield on the 10-year Treasury rose 5 basis points today to 2.95%.