| Last | Change | Percent | |
| S&P Futures | 2062.8 | 7.7 | 0.37% |
| Eurostoxx Index | 3386.7 | -22.2 | -0.65% |
| Oil (WTI) | 51.7 | 1.2 | 2.42% |
| LIBOR | 0.255 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 93.98 | 0.407 | 0.43% |
| 10 Year Govt Bond Yield | 1.88% | 0.06% | |
| Current Coupon Ginnie Mae TBA | 103.5 | 0.1 | |
| Current Coupon Fannie Mae TBA | 103 | 0.1 | |
| BankRate 30 Year Fixed Rate Mortgage | 3.85 |
Markets are higher this morning after a very strong jobs report. Bonds and MBS are down.
Jobs report data dump:
- Nonfarm payrolls + 257k
- Two month payroll revision + 147k
- Unemployment rate 5.7% (increase of .1%)
- Average Hourly earnings +.5% MOM
- Average Hourly earnings + 2.2% YOY
- Average Weekly Hours 34.6
- Labor Force Participation rate 62.9% (increase of .2%)
- Underemployment rate 11.3% (increase of .1%)
Overall, a very strong report, especially with the two month revision and the increase in wages. Bonds sold off hard on the number, although Euro bonds are off as well, so the global backdrop is "risk-on." BLS did the annual revision to the data series this month, so there may be some technical factors in the data. This report certainly adds weight to the hawks who want to see rates increase and worry that the Fed is behind the curve.
Notwithstanding the average hourly earnings increase, I still don't see much in the way of wage inflation. I suspect some of the increase is due to people who have variable compensation - people on commissions, people who get production bonuses, etc. When the economy improves, they do better, however that increase can be temporary. Are "base wages" increasing? It certainly doesn't fell like it is yet.
Final job report observation: the feared job losses in the energy patch have yet to materialize.
Grandpa, tell me again about what it was like when interest rates were set by people in colorful jackets shouting at each other in a big room... Goodbye pit traders..
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