Shares of manufacturing and transportation companies fell as Treasury markets flashed danger signals on the outlook for U.S. growth. One brokerage said investors were reading too much into last week's report on May employment. "On the surface, last week's payrolls number was weaker than expected but glancing at the JOLTS (Job Openings and Labor Turnover Survey) data, job openings are plentiful," said analysts at brokerage Jefferies, in a note to clients. The Jefferies analysts argued that the U.S. is experiencing a "disinflationary boom," where "the inflation rate remains benign but spending grows as confidence returns after geopolitical risks subside." Something similar happened around 2000, the Jefferies analysts said, "when U.S. companies spent on the 'digital economy' sparking a huge IT investment boom while at the same time inflation remained moribund keeping monetary policy loose."
-Rob Curran, firstname.lastname@example.org
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(END) Dow Jones Newswires
June 06, 2017 16:42 ET (20:42 GMT)