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What investors are looking for in the jobs report
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Loading...With oil stabilizing, a mixed earnings season ending and Greece concerns abating, Friday's monthly jobs report is a key indicator for the U.S. economy.
Consensus expects creation of 230,000 nonfarm payrolls in January, with an unemployment rate holding steady at 5.6 percent and wage growth of 0.3 percent. Last month, a 0.20 percent decline, or a 5-cent drop, in hourly earnings jarred markets.
Goldman Sachs expects unemployment of 5.5 percent and wages to grow 0.4 percent, noting in a report that "calendar distortions and an unusual pattern of holiday retail hiring likely accounted for most of the downside surprise."
However, Goldman analyst David Mericle said this week's economic indicators argue for a weaker report overall, with expectations of nonfarm payrolls below consensus at 210,000.
More importantly, the firm expects wage growth to increase by 2.75 percent in 2015, above last year's 1.7 increase but "still well below the 3 to 4 percent wage growth that Fed Chair Janet Yellen has identified as normal."
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