Market Snapshot October 4, 2019

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Good morning on this fantastic Friday,

 

Today was all about the jobs report and with so many components to it, as is typical, today’s report was a mixed bag. I am mentioning a few of the headline components below. When the report was initially released, bonds started to sell off. Since then and after a little thought, bonds are improving as is pricing. The hourly wage component which has a direct correlation with inflation was flat. That shouldn’t be the case in an expanding economy. Stocks are having a party, as the case for the Fed to cut rates in October (end of the month) just got stronger. With another rate cut the dollar weakens, makes our stocks less expensive to global markets and reduces the cost of interest for corporations. For the moment the 10-yr is at 1.52% and it looks like we are heading lower. Closing below 1.52% brings in 1.44% as the next stop on the train. Mortgage bonds also improving but of course, not yet at the same clip. This has been a good week for bonds..

 

  • NFP 136K vs est 145K
  • NFP for August was revised from 130K to 168K
  • Avg Wages YOY 2.9% vs est 3.2%
  • Avg Wages MOM 0.0% vs est of 0.3%
  • Unemployment Rate 3.5% vs est of 3.7

 

Enjoy the weekend and first, make today great!