Latest news with #AdamHetts
Yahoo
3 days ago
- Business
- Yahoo
Labor Market Stayed Resilient In May, Adding 139,000 Jobs
The U.S. economy added 139,000 jobs in May, down from 147,000 in April. The unemployment rate held steady at 4.2%, staying in the same narrow range it's maintained for a year. The job market has stayed resilient, defying fears of tariffs causing a disruptions weren't serious enough to drag the job market into distress, at least not in May.U.S. employers added 139,000 jobs in May, down from 147,000 in April, the Bureau of Labor Statistics said Friday. That was more than the 125,000 forecasters had expected, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. The unemployment rate stayed at 4.2%, the same as in April, remaining in the 4%-4.2% range it's stayed since May data showed employers have remained reluctant to lay off workers, even as hiring has slowed significantly from its breakneck pace of the post-pandemic years. Labor experts expect the job market to start to show cracks in the coming months as uncertainty about tariffs has made companies more reluctant to hire workers, according to recent surveys. But the job market has stayed afloat so far. "Stronger than expected jobs growth and stable unemployment underlines the resilience of the U.S. labor market in the face of recent shocks," Lindsay Rosner, head of Multi-Sector Fixed Income Investing at Goldman Sachs Asset Management, wrote in a commentary. Stock futures jumped in the minutes after the report was released Friday morning. Investors had been nervous about the jobs report on Thursday, after reports on private payrolls and layoffs fueled fears that tariffs were already affecting the labor market. Friday's official government report was a relief, said Adam Hetts, Global Head of Multi-Asset at Janus Henderson Investors. "Good news is good news today, although tariff uncertainty remains, making subsequent hard data releases over the summer extremely important for clarity on the post-Liberation Day economy," Hetts wrote. The lack of red flags about employment could encourage officials at the Federal Reserve to maintain their patient approach to rate cuts. Policymakers at the Fed have held the central bank's benchmark interest rate at a higher-than-usual level this year to keep borrowing costs on all kinds of loans elevated and smother inflation. The Fed is mandated to keep inflation low and employment high, and could lower interest rates to boost the economy if the job market starts to falter. Fed Chair Jerome Powell and other members of the Fed's policy committee have said they are waiting to see whether President Donald Trump's trade wars will boost inflation, cause a wave of unemployment, or both. So far, they have done neither, and the solid job market data could give them breathing room to stay on the fence for longer."With the Fed laser-focused on managing the risks to the inflation side of its mandate, today's stronger-than-expected jobs report will do little to alter its patient approach," Rosner wrote. "We expect the Fed to remain on hold at this month's meeting and think a softening in the labor market data is likely required for the Fed to continue its easing cycle.' Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
10-04-2025
- Business
- Reuters
Janus Henderson says investors should cut down exposure to stocks as recession looms
Summary Companies Janus Henderson recommends 55% equities, 45% bonds amid recession fears Tariffs threaten global growth, prompting shift to investment-grade bonds Potential recovery catalysts in Europe and China include fiscal stimulus NEW YORK, April 10 (Reuters) - Janus Henderson, which manages $379 billion in assets, is advising investors to cut stock holdings and buy more investment-grade sovereign bonds as tariffs threaten to slow global growth, a fund manager said. Janus Henderson now recommends a portfolio of 55% equities and 45% bonds, compared with its call at the start of the year for 62% equities and 38% bonds, Adam Hetts, global head of multi-asset at Janus, told Reuters. "We don't think this is the environment that clients want to buy the dip quite yet, because there could still be more downside," Hetts said. He cited a negative scenario of "the 10% baseline, the tariffs on autos, aggressive counter tariffs and trade war-style escalation with China and Europe." His base case is for a market selloff and the potential for bearish and recessionary cases to take hold. The stock market could go from a disorderly selloff to a more orderly selloff because the recession risk "is much, much higher" than it was a couple of weeks ago, Hetts added. Wall Street's main indexes extended declines in afternoon trading on Thursday, with the benchmark S&P 500 down more than 5%, as investors worried about the economic damage from U.S. tariff policies. The slump reversed a Wednesday rally after President Donald Trump declared a 90-day tariff pause for many countries but raised the levy on imports from China to 125%. "We've gone to an equity underweight in the portfolios," Hetts said, more neutral on U.S. assets and slightly underweight on international investments. "We're headed towards a tariff-induced global slowdown right now in the very short term. Europe and China could have potentially more downside than the U.S., but coming out of that, that might be the place to go," he said. He cited fiscal stimulus in the wake of Germany's elections, potential resolution of the Ukraine-Russia conflict and fiscal stimulus in China as factors that may be catalysts for recoveries in Europe and China. "There are these potential upside catalysts in Europe which was much cheaper as a starting point than the U.S. and then China's been committed to fiscal stimulus and we think that's a story that will play out for quarters to come," he said. For now, investors should allocate more funds to high-grade sovereign bonds to preserve capital, Hetts said. "When we're looking to de-risk... we're looking at investment grade sovereigns, and less so credit because we're also seeing volatility in credit," he said.
