| Last | Change | Percent | |
| S&P Futures | 2112.0 | 2.9 | -.03% |
| Eurostoxx Index | 3031.4 | -32.1 | -1.05% |
| Oil (WTI) | 50.1 | 0.39 | 0.72% |
| LIBOR | 0.673 | -0.001 | -0.15% |
| US Dollar Index (DXY) | 95.38 | -0.510 | -0.53% |
| 10 Year Govt Bond Yield | 1.71% | -0.01% | |
| Current Coupon Ginnie Mae TBA | 105.6 | ||
| Current Coupon Fannie Mae TBA | 104.7 | ||
| BankRate 30 Year Fixed Rate Mortgage | 3.74 |
Stocks are higher this morning on no real news. Bonds and MBS are up.
Janet Yellen spoke yesterday and voiced optimism on the economy overall, while characterizing Friday's jobs report as "weak" and "concerning." The Fed has said they remain data-dependent, and the latest data suggests that they will not raise rates next week. That said, the Fed has a growing credibility issue as they have set up the markets for rate hikes several times over the past couple of years only to get cold feet at the last minute.
The final revision for nonfarm productivity for the first quarter came in unchanged at -0.6%. Unit Labor costs were revised upward to 4.5%. Output ended up increasing 0.9% while compensation was revised upward in a big way to 4.2%. Productivity has been oscillating close to 0% for the past 8 years or so, and that is a big reason why wages have been going nowhere. While there is some debate going on in academic circles over whether we are measuring productivity correctly these days, it remains an issue that explains stagnant wage growth. And that stagnation cannot be fixed by raising the minimum wage or playing with the Fed Funds rate.
Coming on the back of Friday's putrid jobs report, the Labor Market Conditions Index turned down in May. This is a meta-index of leading and lagging employment indicators. While it probably won't factor into the Fed's decision next week, it is worth watching.
Home prices increased 6.2% in April, according to CoreLogic. They are forecasting a 5.3% increase for next year as builders increase production and rates start to rise.
Hillary secured enough delegates to win the Democratic Party nomination last night. Bernie Sanders will begin to come under immense pressure to withdraw from the race while Hillary pivots towards Trump.
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