Non Farm Payrolls

January 6th, 2017

Wrap: Stocks rallied after the somewhat positive December Jobs Report, which saw job creations a bit below expectations while October and November numbers were revised higher. Annual wage growth saw its fastest pace in seven years. The benchmark 3.5% Fannie Mae 30-yr coupon closed at 102.50, -38bp. Stocks continued their winning ways as the Dow nearly touched the 20K mark hitting 19,999.63 only to close at 19,863.80, +64.51 points. The S&P 500 closed at 2,276.98, +7.98, while the Nasdaq was up 33.12 points to end the week at 5,521.05, both record high closes. WTI oil closed at $53.99, +$0.23. 10yr T Note yield 2.41%.

 

Employment Report Friday!

ReportForEstimateActualPrior
Non-Farm PayrollsDec175K156k161K
Average Work WeekDec34.434.334.4
Unemployment RateDec4.70%4.70%4.60%
Hourly EarningsDec0.30%0.40%-0.1%%

 

Below is the news when it happened and the market’s reaction.  For a full view of the day start at the bottom and work your way up. If want to know what just happened start at the top. All Times are Eastern Standard Time.  When the price of Mortgage Backed Securities (MBS) goes down rates go up, and when the price goes up rates come down. Remember in the bond market Bad News is Good News and Good News is Bad news. What Is Going On With Interest Rates?  #wigowir

1:07 PM At midday, MBS lower, Stocks higher, Dow flirts with 20K mark.

11:51 AM The Dow is just 45 points shy of the 20,000 mark, now at 19,955, +56 points.

11:19 AM Stocks push into positive territory. MBS trade near the session lows.

10:38 AM After this morning's volatility, MBS now trade in a tight range, though still well into negative territory. The S&P is slightly lower. 10-yr yield 2.40%.

9:56 AM The S&P is trading slightly lower soon after the open as investors digest the jobs data.

9:02 AM In addition, average hourly earnings rose 2.9% year-over-year, the fastest pace since June 2009, which is also weighing on Bond prices.

9:00 AM The +19K revision for October and November jobs coupled with the rise in hourly earnings (inflationary) pushes MBS lower as investors and traders take some profits after the recent rally.

8:39 AM MBS edging lower.

8:39 AM The 10-yr T Note yield ticks higher to 2.37% from 2.33%.

8:38 AM Average hourly earnings +0.4%, just above the +0.3% expected and up from the -0.1% in November.

8:37 AM The Unemployment Rate at 4.7%, inline, just above the 4.6% in November.

8:36 AM October and November revised a total of +19K.

8:31 AM December Non-farm Payrolls +156K vs the 175K expected.

8:27 AM MBA: mortgage credit once again loosens in December.

8:15 AM U.S. dollar index 101.66, +0.13.

8:15 AM WTI oil $54.18/barrel, +0.41.

8:13 AM S&P futures near unchanged ahead of the jobs data.

8:12 AM The 10-yr T Note yield edges lower to 2.33% from yesterday's close of 2.37%.

8:07 AM MBS open near unchanged ahead of the release of the December Jobs Report at 8:30 a.m. ET.

8:07 AM It is expected that U.S. employers added 175K jobs last month. Unemployment rate expected at 4.7%. Average hourly earnings +0.3%.


Johnmarbury.com has attempted to verify the information contained on this post.  However any aspect of such may change without notice.  Johnmarbury.com does not provide investment advice and does not represent that any of the information or related analysis is accurate or complete at any time. On October 5th we started posting our rates and leaving them on the site for you to refer back to. This will allow  you see where actual rates have been along with the news that caused the fluctuations on the rate sheet.  I ask that you forgive my spelling and grammatical mistakes. This is due writing skills that are lacking and the need to communicate quickly.  Most of the information posted on this blog along with the charts and indexes are available all during the day to the subscrbers of www.themortgagemarketguide.com  The cost of subscription is very reasonable.

 

 

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