The Big Number
The difference in the number of service sector jobs created compared to manufacturing jobs since the beginning of 2015.

What this means
The service industry is driving job creation.  In the period measured, there were about six new service jobs created for every one in manufacturing.  This trend was further confirmed by the robust jobs numbers from last Friday.

Market Notes
Trade talks continued to influence market direction, with equities responding negatively to comments made by President Trump at last week’s NATO meeting. Optimistic reporting from Bloomberg News caused a reversal. The jobs report came in better than expected, with 266,000 jobs added in November, including 54,000 in manufacturing following the end of the GM strike.

The Markets’ Reaction
Stocks rose by 0.9% (SPX) on Friday, following the jobs report. Last week’s global purchasing managers index (PMI) data provided further support for the view that the manufacturing recession is abating.  Bonds were volatile with the yield on the 10-year ending the week up six basis points as the yield curve steepened.

What to Watch
The U.S. Federal Reserve meets on Wednesday and is expected to keep rates on hold. The United Kingdom votes on Thursday, with the election widely seen as a proxy on Brexit.  The European Central Bank meets on that day as well.

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