Morning Report: Strong jobs report 8/4/17

Vital Statistics:

Last Change
S&P Futures 2474.5 2.8
Eurostoxx Index 380.7 1.8
Oil (WTI) 48.9 -0.1
US dollar index 86.1 0.0
10 Year Govt Bond Yield 2.26%
Current Coupon Fannie Mae TBA 102.93
Current Coupon Ginnie Mae TBA 103.81
30 Year Fixed Rate Mortgage 3.94

Stocks are higher this morning after the jobs report beat expectations. Bonds and MBS are down.

Jobs report data dump:

  • Payrolls up 209,000
  • Unemployment rate 4.3%
  • Labor force participation rate 62.9%
  • Average hourly earnings up 0.3% MOM / 2.5% YOY

Not a bad report. The Street was looking for 180,000 jobs, so the number was better than expected. Most of the job gains were in professional / business services, healthcare, and restaurants / bars. The two month revision was negligible. Wage growth remains sluggish, which is probably due to the huge shadow inventory of discouraged workers on the sidelines.

Small business owners are the most optimistic in 10 years, according to Gallup. The biggest challenge to small business? Government.

Wow. The Atlanta Fed is forecasting 4% GDP growth in Q3. The rest of the street is around 2.4%.

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