Friday, March 5, 2021

Daily Market Report 3/5/21 Today is the big day, which the Bureau of Labor Statistics (BLS) provides their Jobs data.  Without further adieu, the Non-Farm Payrolls not only hit 379k (beating estimates of 182k) for the month of February, but it revised it's January from 49k to 166k.  Meanwhile, the Unemployment Rate dropped by 0.1% to 6.2%.  Average Work Week hours were trimmed a bit, from 34.9 hours to 34.6 hours per week.  Average Earnings rose by 0.2%, which matched most estimates.  Stocks were initially in the Red for most of the morning, but trades have subsided a bit since the early trades to moving into Mixed Territory (NASDAQ being lone index in Red).  Investors are moving investments out of over-valued stocks (like Tech) to under-valued stocks (like Financials and Energy) due to concerns over Inflation and Higher Yields.  Speaking of Yields, they touched at 1.62% earlier, but have calmed down to 1.56% currently.  This had a big sell on MBS earlier on, but has come back a bit; and is currently Up 6bps.  Yesterday, we had a big selloff day (closed Down 50bps), as Investors weren't agreeing with Fed Chair Powell's answers to WSJ's Q&A.  The Market wanted to hear about the Fed's approach to inflation down the road, but the Fed has stated that any spike in inflation will be temporary due to the bottleneck in supply chain; and will subside thereafter.  His comments were very dovish, which isn't what investors had in mind.

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