Morning Report - Jobs day

Vital Statistics:

	Last	Change	Percent
S&P Futures	1742.5	4.3	0.25%
Eurostoxx Index	3046.0	17.4	0.57%
Oil (WTI)	99	-0.2	-0.22%
LIBOR	0.238	0.000	-0.10%
US Dollar Index (DXY)	79.48	-0.213	-0.27%
10 Year Govt Bond Yield	2.54%	-0.06%
Current Coupon Ginnie Mae TBA	103.6	0.6
Current Coupon Fannie Mae TBA	102.4	0.6
RPX Composite Real Estate Index	200.7	-0.2
BankRate 30 Year Fixed Rate Mortgage	4.34

Markets are higher on the back of a weaker-than-expected jobs report. Bonds are flying on the report, which has the 10 year down 6 basis points to 2.54%. MBS are up as well, and we are no best-exing into a 3.5% coupon. Later on today we will get international capital flows, construction spending, and Richmond Fed.

The economy created 148k jobs in September, lower than expected. August was revised upward. The unemployment rate fell to 7.2% while the labor force participation rate remained the same at 63.2%, a level we haven't seen since the late 70s. The last time the labor force participation rate was this low, "Three Times a Lady" by the Commodores was topping the charts. The workweek stayed the same at 34.5 hours and earnings increased .1%.

Overall the jobs report is weak enough to take any sort of December tapering off the table. Don't forget these numbers predate the shutdown, so October's numbers will invariably be worse. 

Existing Home Sales dropped to a seasonally adjusted annual rate 5.29 million units in September, according to the National Association of Realtors. Distressed sales accounted for 14% of sales,and cash sales were 33%. Inventory was steady at 5 months of supply. The median house price rose 11.7% year-over-year to $199,200.