| Last | Change | Percent | |
| S&P Futures | 1896.6 | -11.9 | -0.62% |
| Eurostoxx Index | 2882.8 | -13.8 | -0.48% |
| Oil (WTI) | 32.15 | -0.1 | -0.40% |
| LIBOR | 0.619 | 0.001 | 0.10% |
| US Dollar Index (DXY) | 96.44 | -0.850 | -0.87% |
| 10 Year Govt Bond Yield | 1.87% | -0.02% | |
| Current Coupon Ginnie Mae TBA | 105.3 | ||
| Current Coupon Fannie Mae TBA | 104.7 | ||
| BankRate 30 Year Fixed Rate Mortgage | 3.69 |
Stocks are lower this morning after the jobs report. Bonds and MBS are down
Jobs report data dump:
- Nonfarm payrolls + 151k vs 190k expected
- Unemployment rate 4.9%
- Average Weekly Hours 34.6
- Average Hourly Earnings up 2.5%
- Labor force participation rate
Overall a good report, Payrolls are disappointing, but the rest is strong. We are starting to see the beginning of wage inflation with average hourly earnings up 2.5%. December's number was revised upward from 2.5% to 2.7%. Stocks and bonds are down as this report will keep pressure on the Fed to maintain its posture of normalizing rates. The 2-year yield is higher by 4 basis points.
Higher wage inflation coupled with no inflation equates to lower profit margins. Ironically, this is the sort of "middle class economy" that politicians are promising to bring back. Good for workers, not so much for investors.
The rise in the dollar and the corresponding fall in commodity prices is wreaking havoc on other economies though. Citi is saying fear oilmageddon. This will be felt not only in developing economies like Russia and Brazil, but also developed economies like Canada and Norway. Norway's "economic miracle" may have simply been a massive leveraged bet on oil and real estate.
Obama proposed slapping a $10 per barrel tax on oil. Obviously that is going nowhere..
1 in 3 houses are still bought with cash, according to CoreLogic. This is a drop of 3 percentage points from a year ago.
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