Goldman's Pasquariello: By The Time Of The September OpEx, The Two Biggest Drivers Of The August Bounce Will Be Out Of Gas

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.