September 2nd, 2022 - Market Update
Current position: Floating
Stocks and Mortgage Bonds are both higher after the Bureau of Labor Statistics (BLS) reported that were 315,000 jobs created in August, which was above expectations of 300,000. There was also 107,000 in negative revisions to June and July.
The Unemployment Rate increased from 3.5% to 3.7%, which was higher than expectations of 3.5%. The unemployment rate comes from the household survey, which has its own job creations component.
This report showed 442,000 job creations, while the labor force increased by 786,000. For those reasons, the unemployment rate increased, but again, partially due to the increase in the labor force.
The labor participation rate increased 0.3% to 62.4%.
The real unemployment rate is higher than 3.7%, but the U-3 is what everyone looks at, and removes individuals who are not actively searching for a job
There are around 6 million people that are not being counted that "want a job" but have not looked in the last four weeks.
The U-6 all-in unemployment rate, which adds back all these individuals, increased to 7.0%
Average hourly earnings were up 0.3% in August and are up 5.2% year over year. Average weekly earnings were unchanged from the previous month and are up 4.6% ear over year.
Next week is a quiet news week, with the Fed's Beige Book slated for release on Wednesday.
Mortgage Bonds are moving sharply higher off of support at 99.0 following a favorable BLS Jobs Report. The 10-Year has fallen below the pivotal 3.25% level and is currently trading at around 3.20%.
Begin the day Floating.
Source: MBS Highway
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