http://MikesDailyMarketReport.com: Non-Farm Payrolls reported 701k job losses for the month of March. This was much higher than estimates, anywhere between 80k-150k job losses, as the sample data used for this model were derived from March 12, which was prior to the full scope of the coronavirus crisis. Also, Unemployment Rate jumped up to 4.4%. Average Hourly Earnings rose 0.4% in March, which we believe this was skewed as lower salary employees being let go first. The next 2 reports are on the Services Industry, which in these reports any number above 50 is expansion/optimism; whereas, anything below it, is contraction/pessimism. The Markit Services PMI dropped from 49.4 to 39.8; while the ISM Non Manufacturing Index dropped from 57.3% to 52.5%. Stocks are Down on the Job data today, but the rise of Oil prices is helping it not to really sink. The price per barrel rose approximately from $20 yesterday to $27 today, as Russia and Saudi Arabia agreed to cut back on production by approximately 6 million barrels/day. This sector (energy) was struggling as their value rapidly dropped approximately 60% and was mentioned as a possible stimulus recipient. Meanwhile, MBS is Up 28bps this morning, which would normally be an improvement in Mortgage Rates, but we're still not seeing Lenders price accordingly. However, I'm hearing that we may start to see some improvement in that area within days now. Fingers crossed! Yields are down to 0.58%.
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