How Trump's pre-jobs report tweet moved the market

How Trump's pre-jobs report tweet moved the market

How Trump's pre-jobs report tweet moved the market

The Republican National Committee pushed back against criticism of Trump's Friday Twitter post by pointing to a comment Obama made on February 5, 2009, the day before jobs data was released. Bloomberg News data also showed that the value of the USA dollar moved sharply higher after the Twitter post compared with previous trades the mornings jobs data are released.

To many traders it was clear that Trump was signaling the numbers would be good.

The unemployment rate dipped to 3.8 percent - the lowest level in 18 years.

Top Trump economic adviser Larry Kudlow said on CNBC he thought the criticism was much ado about nothing and he doubted that the vaguely worded tweet coming out just an hour ahead of the official announcement could have had much effect.

The May jobs report was in fact a good one for a president who likes to brag about the strong jobs market.

Friday's report, which showed job growth that exceeded analyst forecasts and solid wage gains, caused the yield on the 10-year Treasury bond and the Dow Jones industrial average to jump after its formal release. A select number of administration officials receive the data the day before, but officials are prohibited from tipping their hand about what the numbers reveal.

Trump's social-media post was met with tepid reaction in financial markets, where investors assess more than just the headline numbers.

"This certainly was a no-no", Ari Fleischer, former press secretary to President George W. Bush, said in a tweet. "The advance info is sacrosanct - not to be shared", he wrote.

Former treasury secretary Lawrence Summers said it was a remarkable breach that in the past would have led to multiple investigations.

But the president is typically briefed separately on the report prior before its release.

"The unemployment and underemployment rates both ticked down, and reflect the continued tightening in the labor market", Sameer Samana, global quantitative and technical strategist with Wells Fargo Investment Institute told FOX Business.

Still, giving the market any kind of clue ahead of time is extremely unusual.

The rule further specifies that federal employees other than Labor Department staff charged with issuing the report can not publicly comment on the data for the first hour after the release time, let alone ahead of the report.

"You should have gotten the employment numbers from the Council of Economic Advisers yesterday", tweeted Jason Furman, who chaired the council under Obama from 2013 until early 2017.

"Its market moving and it creates instability and uncertainty in markets", Furman said.

Second, there has been a strong effort to insulate this information from political leaders, as advance discussion of the data could make it seem politicized.

Job creation has always been the key talking point for the Trump administration.

The answer to this question is clearly that we can not be sure that this hasn't or wouldn't happen thanks to the fact that this President has already violated almost every other norm that applied in the past.

Trump's supporters revere this mold-breaking approach, but it has created an environment in which information that has always been closely held by the government is now fair game for Trump to reveal through a Twitter post or a casual remark.

Finance ministers from six of the G7 members have condemned President Trump's decision to impose tariffs on some of America's allies.

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