The Jobs Report Missed Badly and Stocks Rallied: Decoding the "Bad News Is Good News" Trade

Employers added just 29,000 jobs in September, far below forecasts, and the prior 2 months were revised down by 60,000. Stocks rallied anyway. The reason is a rate-hike repricing that only works inside a narrow band: soft enough to stay the Fed's hand, not soft enough to threaten earnings. Here's how that band works, and why the October 14 CPI report could break it.