June Employment Report Commen from our stategist

Employment data shows the economy is still robust, although it repeats the story of job growth in the service industry -- U.S. added 132K jobs to nonfarm payrolls in June, higher than the market expectation 125K; -- The previous nonfarm payroll number in May was revised upward from 157K to 190K; -- Most of the job increases were in state and local governments (41K, mostly in public education), leisure (39K), health (42K), and private education (17K); -- Manufacturing continued to lose another 18K jobs; -- Finance added only 1K jobs, due to job cuts in commercial banks in the downturn of the real estate market; -- It seems the current job growth is still supported by government tax receipts and earned income spent on leisure activities; -- This indication of a robust economy will possibly abate the current risk aversion due to the subprime debacle; -- Expect Stocks rally, Treasuries decline, and LBOs continue for a while.