Despite the payroll employment number being higher than expected, the fact that average hourly wages were so small means that there are not a lot of wage pressures, not a lot of demands to add new workers and, therefore, not a lot to worry the (Federal Reserve) in this report.
"Ronald "Ron" Hill" is a Welsh people/Welsh professional rugby league footballer of the 1960s and '70s playing at representative level for Wales national rugby league team/Wales, and at club level for Castleford Tigers/Castleford, and Salford City Reds/Salford, as a , i.e. number 13, during the era of Scrum (rugby)#Rugby league/contested scrums.More Ronald Hill on Wikipedia.
(FedEx) is really a play on the broad based global recovery. Sort of moving out of the truckers, moving into the international people away from a strict domestic U.S. focus, more toward international focus.
Basically, everything but the studs and bricks.
I think you're still set for new highs in 1998, probably about 10 percent or so on the S&P 500. We've done 25 percent so far this year on the S&P. Reduce your expectations but I still think stocks will beat bonds and cash in 1998.
Earnings actually have been very good in the second quarter. Sixty percent of the companies reporting so far have been upside surprises. That's not quite as aggressive at this point as the first quarter reports were, but still a very good performance in a weak quarter.
The fact that hourly wages were so small and, in fact, the work week was down -- it is very positive. It means there are not a lot of wage pressures, not a lot of demands to add new workers.
We're looking at a 9 percent correction. But at the end of the day, there's not enough pressure yet to cause a recession, so corporate earnings will continue to come through.
World economies are starting to grow a little better. But I think it's really a key that the American industry is still competitive with the dollar significantly higher than it was last year and [as] exports continue to go overseas.
What is happening is a little like what happened in the 1920s, the period where demand growth was quite strong but supply growth was even faster. You had new technology then, it was electric power. Now its computing power.