Employment Numbers Revisions & Friday's Selloff

Yesterday morning on CNBC, economist Brian Wesbury shed some light on the employment numbers which caused Friday's sharp equity markets selloff.


When discussing the economy for 2008, Wesbury contended that it is in solid shape, with basic employment and incomes growth intact. He cited the Friday number of 18,000 newly employed and agreed that 'we'd all like that to be higher.'


Then he went on to recall that, in August, the same report caused another market selloff when it registered -4,000 new jobs.


However, Wesbury explained, that -4,000 subsequently became adjusted to a positive 90,000. That's some difference.


Wesbury then remarked that low or negative numbers, in the context of this still-growing economy, typically get revised upward at a later date. But we don't hear about these revisions as front page news.


If you recall, after a lackluster, but positive August, the S&P500 Index registered a gain of almost 4%.


Makes you wonder how equities will fare in February, if the January employments numbers are also revised upwards at a later date.