Morning Report: Goldilocks jobs report

Vital Statistics:

 

Last Change
S&P futures 2891 6.75
Eurostoxx index 387.8 -1
Oil (WTI) 62.72 0.26
10 year government bond yield 2.54%
30 year fixed rate mortgage 4.20%

 

Stocks are higher this morning after the payroll number. Bonds and MBS are down small.

 

Jobs report data dump:

 

  • Nonfarm payrolls up 196,000 (expectation 180,000)
  • Average hourly earnings up 0.1% MOM / 3.2% YOY (expectation 0.3% / 3.4%)
  • Labor force particpation rate 63%
  • Unemployment rate 3.8%

 

Overall, it was a bit of a Goldilocks jobs report: enough strength to quell fears of a slowdown, but tame enough wage growth to keep the Fed from tightening more. January and February’s payroll numbers were revised upward by 14,000.

 

Trump will nominate Herman Cain for the Federal Reserve Board. While many find the idea of nominating a pizza chain executive strange, he did run the Kansas City Fed so he does have monetary policy experience. Certainly with Steve Moore and Herman Cain, there will be a different voice from the predominantly academic / salt water view on things.

 

The Senate confirmed Mark Calabria to run FHFA.

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Author: Brent Nyitray

Why do you need new bands? Everyone knows rock attained perfection in 1974. It's a scientific fact. - Homer Simpson

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