Stocks are higher this morning on no real news. Bonds and MBS are up small.
The economy lost 23,000 jobs in July, according to the Employment Situation Report. The unemployment rate fell to 4.1%. The unemployment rate was driven by a 264k decrease in the labor force and a 178k decrease in the number of unemployed. The labor force participation rate fell 0.1% to 61.4% and the employment-population ratio fell 0.1% to 58.9%.
Healthcare and social assistance added the most jobs, while payrolls fell in government and leisure / hospitality.
This report will certainly challenge the Fed’s narrative that the employment side of the dual mandate is under control. That said, they are mainly concerned with managing the unemployment number, which did fall.
Average hourly earnings rose 0.1% MOM and 3.2% YOY. Bonds are reacting positively on the report. The September Fed Funds futures now see a 45% chance of a rate hike, down from 55% yesterday.
Rocket reported second quarter earnings of $0.08 per share compared to a loss of a penny a share a year ago. Volume was $49.1 billion, while gain on sale was 2.48%. The stock is down about a percent pre-open, which is much better than crosstown rival United Wholesale, which got taken to the woodshed for 35% yesterday.
Nonfarm productivity increased 1.4% in the second quarter as output increased 1.7% and hours worked rose 0.3%. Unit Labor costs rose 1.3%, reflecting a 2.7% increase in compensation and the 1.4% increase in productivity. The productivity number was better than expectations.
