Morning Report: Strong jobs report 8/5/16

Posted on August 5, 2016 by Brent Nyitray

Vital Statistics:

Last Change
S&P Futures 2179.0 14.0
Eurostoxx Index 341.0 3.0
Oil (WTI) 41.3 -0.6
US dollar index 87.0 -0.2
10 Year Govt Bond Yield 1.56%
Current Coupon Fannie Mae TBA 103.3
Current Coupon Ginnie Mae TBA 104.2
30 Year Fixed Rate Mortgage 3.52

Markets are higher after a stronger than expected jobs report. Bonds and MBS are down.

Jobs report data dump:

  • Nonfarm payrolls +255,000
  • Unemployment rate 4.9%
  • Labor Force Participation rate 62.8%
  • Average hourly earnings +0.3% (2.6% YOY)

Overall, a good report. Not sure it moves the needle with the Fed in September, but it looks like May’s super-weak report was an aberration. The underemployment rate increased however, which suggests that the long-term unemployed may be coming back to the market, but they have to settle for part time jobs.

Bonds sold off on the report, with the 10 year yield up about 4 basis points, and the 2 year up 6.

Filed under: Economy, Morning Report |

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10 Responses

  1. jnc4p's avatar
    jnc4p, on August 5, 2016 at 11:06 am said:

    Random piece of good news that I was unaware of

    “Call off the bee-pocalypse: U.S. honeybee colonies hit a 20-year high”

    https://www.washingtonpost.com/news/wonk/wp/2015/07/23/call-off-the-bee-pocalypse-u-s-honeybee-colonies-hit-a-20-year-high/

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  2. jnc4p's avatar
    jnc4p, on August 5, 2016 at 12:09 pm said:

    Worth a note:

    Apparently the FBI was in contact with the people who shot up the cartoon contest in Texas before it happened.

    http://www.esquire.com/news-politics/politics/news/a47371/fbi-terrorism-draw-muhammad/

    http://www.thedailybeast.com/articles/2016/08/04/fbi-agent-apparently-egged-on-texas-terrorist.html

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    • jnc4p's avatar
      jnc4p, on August 8, 2016 at 10:05 am said:

      Or as Lenin put it “useful idiot”.

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    • Let the mutherfuker burn!'s avatar
      Let the mutherfuker burn!, on August 8, 2016 at 11:15 am said:

      Considering Morell’s lack of credibility, are we sure it’s not a badge of honor?

      http://www.aim.org/aim-column/mike-morell-attempts-to-repair-his-damaged-credibility/

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      • markinaustin's avatar
        markinaustin, on August 8, 2016 at 5:09 pm said:

        Its freaking unanimous, George.

        This letter is from just about every Republican FP guy of the last 40 years [I exaggerate, but only slightly].

        Surely you respect one or two of them?

        They would not be moved to write such a letter about Johnson, you can bet.

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        • Let the mutherfuker burn!'s avatar
          Let the mutherfuker burn!, on August 8, 2016 at 7:01 pm said:

          So, we’re taking the FP advice of those that missed, for example, 9/11? That supported “torture”?, that advocated, planned and executed the Iraqi invasion and occupation? That planned, opened and still agitate for the continuing existence of Gitmo? That beat the drum for the Libya adventure? That want to topple Assad? That continue to cater to the Saudi Royal and the Pakistani’s? That see still see Turkey as a fundamental ally?

          Ok, if that’s what passes for Foreign Policy expertise…

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        • ScottC's avatar
          ScottC, on August 8, 2016 at 7:29 pm said:

          Mark:

          From the letter:

          Most fundamentally, Mr. Trump lacks the character, values, and experience to be president. He weakens US moral authority as the leader of the free world. He appears to lack basic knowledge about and belief in the Constitution, US laws, and institutions, including religious tolerance, freedom of the press, and an independent judiciary.

          Replace Trump with Obama and was this any less true in 2008? Indeed, with the exception of experience, is it any less true even today?

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