Jobs Report May Mean More to Presidential Race Than Markets
October 5, 2012 Leave a Comment
Traders say Friday’s jobs report may have more impact on the presidential race than the markets, though investors will still be watching closely.
Economists expect employers added 113,000 jobs in September, while the unemployment rate edged up to 8.2 percent from August’s 8.1 percent, according to a Reuters survey. Friday’s report will be the second-to-last before the November election.
“Because of [this jobs report’s] juxtaposition to election, there will be significant political ramifications, perhaps more so than for the market,” said Art Hogan, managing director at Lazard Capital Markets. “Politically, anything that pushes the cause of the Romney camp forward could have a positive effect on the market.” (Read More: Wall Street Hopes for Romney, but Expects Obama to Win.)
In Wednesday night’s debate, Republican challenger Mitt Romney sharply criticized President Barack Obama over the tepid pace of of job creation. Although layoffs have declined, employers have been hesitant to hire because of uncertainty over who will be the next president, as well as the impending “fiscal cliff” at year-end.
“How we avoid the ‘fiscal cliff’ is impossible to know without incorporating the concept of who’s the next president,” said Hogan. READ MORE