Friday, February 7, 2020

Daily Market Report 2/7/20 We have the Jobs data being reported from the Bureau of Labor Statistics.  The Non Farm Payrolls came in much hotter than expectations (165k) in January at 225k new jobs.  The previous 2 months were revised higher by another 7k.  The Unemployment Rate rose from 3.5% to 3.6% in January due to more people entering the workforce, as the Labor Participation Rate increased.  Also, employees are making more money, as Average Hourly Earnings rose by 0.3% in January, or 3.1% YoY.  Meanwhile, Wholesale Inventories declined by 0.2% in January.  Stocks are down on the good news (regarding the Jobs data).  They are in a Over-Bought position and were forecasting that the Fed would cut rates again in June.  Because the Jobs data was so hot, then now they're thinking the Fed won't cut rates; so good news is bad news!  This is helping Mortgage Rates, as they improved today on the MBS rising 14bps so far this morning.  MBS is testing it's ceiling, but is being turned back.  We'll see if it can muster enough to break above it.  Meanwhile, Yields have fallen down to 1.59%.

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