The U.S. jobs report surprised market watchers on the downside, but upward revisions kept the bears from having their way unopposed.

Although today’s report announced huge job losses in the United States, 114,000 worth, markets moved little. The large negative result was buttressed by news of upward revisions to May and April results.

According to CIBC World Markets, “[this] prevented a huge payroll reduction in June from casting a newly bearish take on the American economy.”

On balance, the three-month result is more or less in line with expectations. Manufacturing remained weak. Almost 800,000 factory jobs have been lost in the past 12 months. CIBC observes, “Hours worked were flat, and only a smaller-than-expected rebound in the workforce held the unemployment rate increase to a single tick. The participation rate fell to a five-year low, suggesting that some are no longer actively seeking employment in this less rosy economy. Hourly earnings gained an on-trend 0.3%, but May’s base level was lowered by a cent.”

With the jobs picture relentlessly weak in the U.S., CIBC is reiterating its call for just 1% second quarter growth in the U.S. “The greater threat to growth lies ahead. June data imply labour income gains were held to 0.1% — not much in the way of real spending power. Can consumers wait it out for the tax cuts to come before bringing spending into better line with incomes?” it asks.

With its gloomy view on the U.S. economy, CIBC suggests that more rate cuts are due there. “While equities have been pricing in more economic weakness to come, fixed income investors should be thinking about what heavy job losses in June mean for their hasty conclusion that the Fed’s rate cutting work is done. If next week’s retail data show similar softness in ex-auto sales, the front end at least should begin to get some support as investors put greater odds on another Fed rate cut.”