May jobs report crushes recession fears, market expert says

The May jobs report came in hotter than expected, showing surprising strength in the labor market. Eddie Ghabour, co-founder, Key Advisors Group, joined TheStreet to discuss what this report means for the U.S. economy.

Related: Here's what the May jobs report won't tell you

Full Video Transcript Below:

EDDIE GHABOUR: So the job numbers. And what did we make of this report is that we are nowhere near a recession. We're getting a hearing a lot of recession calls. And when you look at this job data, it just which is why the market's reacting the way that it is. I think it just continues to support that. We are of a really resilient economy. And although the jobs number wasn't through the roof, it beat expectations. And just as importantly, it gives the Fed a little bit more ammunition to justify rate cuts, which would be bullish for markets as well too. But one of the biggest things that has stood out to us is when we're looking at wage increases. This is again very bullish from an economic perspective because we know Americans love to spend money in these wage increases at a time when the rate of change of inflation is actually slowing down, is a net positive money in folks pockets, and that money is going to filter into the economy. And I think we're going to see that over the coming quarter. We believe the economy is growing at a much faster pace than many people realize.

What this report tells us about the state of the economy is we're not close to a recession. And I know that's not a consensus call. And the reason why we say that it is really hard to have a recession when you have unemployment rate with a four handle, and we don't see unemployment breaking down to a level that would concern everyone and get that recession trade on. We think the next 12 months from both an economic and stock market perspective are going to be extremely prosperous. And the capital markets are really smart. We believe this market has had this nice recovery and resiliency because it is sniffing out the forward looking data that's going to come down the road. And so we think we're in a really good spot. I would really call this a Goldilocks market. Like anything it's not going to go straight up. We're going to have hiccups along the way. We'll have bumps. But those dips in our opinion should be bought until the data changes. And right now the data just continues to support that. It's prudent to stay bullish.