By Tony Pasquariello, Goldman head of hedge fund coverage
The story of this week: the US remains a two-speed economy, with increasing debate around the broad trajectory of growth; at the same time, uncertainty around the Fed’s move in September wasn’t resolved, with increasing debate around whether a mistake was made in July.
On the first point: ISM manufacturing was soft, yet again while ISM services continues to defy the bears and the sequence of JOLTS/claims/payrolls illustrates a labor market that’s clearly slowing, but is not yet displaying an increase in layoffs.
