 Or at the economy, adding 138,000 jobs in May, expectations were for 185,000. Here now is Joe Stadel, a capital markets economist at JPMorgan private banks. So Joe, what do you make of the numbers? Quite a miss here in consensus. Yeah, it's definitely below expectations, especially with the revisions. There's about 60,000 off for March and April. Not a good report to see, but I'd caveat it a little bit. One, the unemployment rate still fell from 4.4 to 4.3. It only takes about 100,000 jobs a month to lower the unemployment rate. So you're still running at a rate in the jobs market that it is putting downward pressure on the unemployment rate. And to be honest with you, the jobs market has been running really hot now, unusually hot for this stage of the business cycle. We've been above 200K for a while now. Now that wages are rising and we're sort of at the latter stages of the business cycle, you would expect some transition away from job growth towards business investment as the cost of labor rises. So the market's probably going to treat it as negative, but as an economist, I don't think it's that negative when you look at the underlying numbers. But what does this mean for the Federal Reserve and their June meeting? Because we're also seeing a softening of inflation data and now to have sort of a soft jobs report two weeks before the Fed meeting. I think some investors would think that it puts that Fed rate hike in June in limbo. There's definitely a conundrum for the Fed. It's not going to affect June. June's already priced in. They've already communicated it to the market. They're very likely going to hike in June. I think for the next hike, we are base cases in December, but to be fair, there's less conviction there because of core inflation moderating. Wage growth is still kind of moving sideways at 2.5%. So there's not this evidence that the labor market is overheating. So why would the Fed continue to hike if they have inflation mandate? There is a conundrum coming up for the Fed, but it's more towards the end of the year, not for June. Okay, and wage growth, like you mentioned, is up 2.5% year over year as of this month. So it's stuck in the spot we've been in for months now. You also said that the report might be viewed as negative for the markets, but what do you make of where we are right now in stocks? I mean, record highs in the broad indexes. It seems a little bit scary that perhaps a crash is coming. What do you think? No, I don't think so. I think most of the reflation from Trumponomics has been faded. If you look at underlying earnings in the market, they've been robust. Q1 earnings came out really solidly. It's more a reflection of the global cyclical upturn in manufacturing and international trade than any hope surrounding policy. I don't think the market's significantly overvalued at all here in the US. That said, multiples aren't going to rise significantly from here. So more tactically, we're kind of looking outside the US right now for the more impetus of growth. It's more Europe and emerging markets than in the US. But we still like US and we're telling investors not to fear the US. It's just that the gains from here are going to be less muted compared to the past. Yeah, well, and what sectors here in the US are you still telling clients to look at? It's obviously technology. Tech earnings were really solid in Q1. They continue to be really solid. We like energy here. I mean, oil has pulled off a lot and energy stocks are a lot down. So it's very tactical to look at energy. And then healthcare is a secular earnings driver. So it continues to be a demographic story and a healthcare innovation story. So those are the three that we look at in the US. All right, Joe Sato, we appreciate your analysis. Thanks for joining us. Thank you. All right, I'm Scott Gamm and you're watching The Street.