Friday, October 8, 2021

Daily Market Report 10/8/21  Today is the big jobs data from the Bureau of Labor Statistics (BLS).  The average earnings rose 0.6% in September, which average work week rose to 34.8 hrs/week.  However, the Non-Farm Payrolls disappointed again, as only 194k.  There was an expectation of approximately 500k.  But, the August numbers were revised higher, from 235k to 366k; but this is still a far miss from it's expection of around 700k-900k.  On the flip side, we saw a drop in the Unemployment Rate  from 5.2% to 4.8%.  I think October will be interesting, as companies begin to layoff non-vaccinated employees, whom won't be on the Unemployment data.  Lastly, wholesale inventories continued their 1.2% trend for the 2nd month in a row for August.  Investors are Uncertain about the Fed's stand, as the Jobs data disappointed with huge misses for 2 months in a row; and we're entering the fall/winter period when people will be more indoors.  This latter comment is the concern for the possibility of another uptick with the delta/corona virus numbers, which again, may slow down the economy.  Meanwhile, Congress temporarily avoided a shutdown/default on debts when the Senate passed a temporary increase to the Debt Ceiling, which will be good until Dec. 3rd.  Like the Equity Markets, MBS is taking a bit of a beating (again) today, as it's currently Down 16bps.  Mortgage Rates rose, as a result.  The increase in Mortgage Rates is approximately .125% to the rate.  Also, Yields are rising again, to levels last seen in June.  It's up to approximately 1.61%.  This is adding pressure to MBS.  Investors appear to be uncertain, so they're pulling investment dollars out of both markets for the time being.

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Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

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