Morning Report: Mortgage Applications rise

Vital Statistics:

 LastChange
S&P futures3,988-41.50
Oil (WTI)80.05-0.08
10 year government bond yield 3.46%
30 year fixed rate mortgage 6.17%

Stocks are lower this morning after Microsoft’s earnings missed Street expectations. Bonds and MBS are up.

Mortgage applications increased 7% last week as purchases fell 1% and refis rose 15%. “Mortgage rates declined for the third straight week, which is good news for potential homebuyers looking ahead to the spring homebuying season. Mortgage rates on most loan types decreased last week and the 30-year fixed rate reached its lowest level since September 2022 at 6.2 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Overall applications increased with both gains in purchase and refinance activity, but purchase applications remained almost 39 percent lower than a year ago. Homebuying activity remains tepid, but if rates continue to fall and home prices cool further, we expect to see potential buyers come back into the market. Many have been waiting for affordability challenges to subside.”

The increase in refis sounds great, but we are coming from extremely low levels. The chart looks like Ask Jeeves circa 2002.

We are seeing the financials increase provisions for credit losses. Capital One provisioned $2.4 billion, which was a big increase from $1.9 in Q3 and $388 million a year ago. Given Capital One’s credit card exposure this is a warning that the consumer might be facing some trouble.

In other consumer banking results, we saw increases in provisions from Ally and Synchrony as well. For Ally, provisions are back towards pre-pandemic levels.

One bank that bucked the trend was Western Alliance, which provisioned only $3.1 million in credit losses in Q4 compared to $28.5 million in Q3. Asset quality remains robust, and charge-offs are low. Given that Western Alliance has some hefty exposure to the mortgage industry, this result is encouraging.

Homebuilder D.R. Horton announced earnings this morning that missed Street expectations, as earnings fell 13%. Revenues were slightly positive. Net sales orders fell 38% and the cancellation rate rose to 27%. Backlog fell 46%. “Beginning in June 2022 and continuing through today, we have seen a moderation in housing demand caused by significant increases in mortgage interest rates and general economic uncertainty. While these pressures may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable.” The company is guiding for gross margins to fall to about 20% – 21%. This suggests that they might need to cut prices in order to move the merchandise.

Rising costs have been discouraging Millennials from buying a home, however most are accepting the higher costs and adjusting their plans accordingly. They are increasing their savings, spending more than they had hoped (which is probably typical for any first-time homebuyer), and delaying purchases. Most will simply have to come to grips with the fact that the 3% mortgage rates of the pandemic are probably not coming back, at least in the near term.

Morning Report: Activity in the private sector declines again

Vital Statistics:

 LastChange
S&P futures4,024-11.50
Oil (WTI)81.770.15
10 year government bond yield 3.50%
30 year fixed rate mortgage 6.19%

Stocks are lower this morning as earnings continue to come in. Bonds and MBS are up small.

Loans in forbearance were flat at 0.7%, according to the MBA. Fannie and Freddie loans were 0.31%, while Ginnie loans were 1.45%. “For three consecutive months, the forbearance rate has remained flat — an indicator that we may have reached a floor on further improvements,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “New forbearance requests and re-entries continue to trickle in at about the same pace as forbearance exits. The overall performance of servicing portfolios was also flat compared to the previous month, but there was some deterioration in the performance of Ginnie Mae loans.”

The private sector continues to contract, according to the Flash PMI Index.

“The US economy has started 2023 on a disappointingly soft note, with business activity contracting sharply again in January. Although moderating compared to December, the rate of decline is among the steepest seen since the
global financial crisis, reflecting falling activity across both manufacturing and services. The worry is that, not only has the survey indicated a downturn in economic activity at the start of the year, but the rate of input cost inflation has accelerated into the new year, linked in part to upward wage pressures, which could encourage a further aggressive tightening of Fed policy despite rising recession risks.

Rising wage inflation will be a red flag for the Fed.

In a sign that the labor market is weakening, we are seeing companies cut temporary workers. Some of the cuts were at the bigger tech companies which are all announcing layoffs in general. Smaller companies which struggled to compete for talent during the past couple of years will probably absorb these temp workers relatively quickly. A drop in temporary worker hiring is often taken as a leading indicator for larger changes in the workforce.

About 13% of adults are planning on buying a home, a decrease from 15% in the third quarter of 2022, according to research from the National Association of Home Builders. Respondents are more interested in buying an existing home than a new one. Affordability is a big issue as 87% respondents said that they were unable to afford more than 50% of the homes in their market. This bodes ill for the Spring Selling Season, but rates have fallen substantially over the past few months, so that should help alleviate some of the affordability issue.

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Morning Report: Leading Indicators are still flashing a recessionary signal.

Vital Statistics:

 LastChange
S&P futures3,9935.50
Oil (WTI)82.360.72
10 year government bond yield 3.53%
30 year fixed rate mortgage 6.20%

Stocks are higher this morning on no real news. Bonds and MBS are down.

The week ahead won’t have much in the way of major market-moving data, but we will get a few important reports including the advance estimate for GDP on Thursday and personal incomes and outlays on Friday. Earnings season picks up in earnest with a slew of major companies reporting including Tesla and Microsoft. We won’t get any Fed-speak as we are in the quiet period ahead of the FOMC meeting next week. We will get the debt ceiling kabuki theater performance as well.

The Index of US Leading Economic Indicators declined again in December, following a decline in November. “The US LEI fell sharply again in December—continuing to signal recession for the US economy in the near term,” said Ataman Ozyildirim, Senior Director, Economics, at The Conference Board. “There was widespread weakness among leading indicators in December, indicating deteriorating conditions for labor markets, manufacturing, housing construction, and financial markets in the months ahead. Meanwhile, the coincident economic index (CEI) has not weakened in the same fashion as the LEI because labor market related indicators (employment and personal income) remain robust. Nonetheless, industrial production— also a component of the CEI—fell for the third straight month. Overall economic activity is likely to turn negative in the coming quarters before picking up again in the final quarter of 2023.”

Basically the labor market and consumption are the only things holding up the economy at the moment. The labor market’s strength should have an asterisk next to it given that the tightness is due to people opting out of the labor market

I published another article on Substack over the weekend, where I discussed Friday’s awful existing home sales number, did a deep dive into MBS spreads and the effect of QE / QT. Housing affordability (see the matrix below) also gets an in-depth discussion as well. A lot of the stuff I cover on The Weekly Tearsheet doesn’t really get covered in here. Check it out and please consider subscribing.

The Fed Funds futures are a lock for 25 basis points next week. A 25 basis point hike would put the Fed Funds target rate at 4.5%-4.75%, and the March futures see another 25 which would put us at 4.75% – 5%. The May and June futures see a 33% chance for another 25, and that probability gradually fades as we round out the year.

The street estimate for Q4 GDP is 2.7%, which is pretty robust, but the Atlanta Fed’s GDP Now estimate is for 3.5%. Both numbers seem high given some the ISM numbers showing contraction in manufacturing and services. Maybe some of this is inventory build which will have the effect of “borrowing” growth from Q1.

I am accepting ads for this blog as well if you would like to highlight something your company is offering or want more visibility. I also offer white-label services which give you the ability to use this content for your own daily emails. Please feel free to reach out to nyitray@hotmail.com if you would like to discuss this further.

Morning Report: Existing home sales fall again

Vital Statistics:

 LastChange
S&P futures3,925 10.50
Oil (WTI)80.750.42
10 year government bond yield 3.46%
30 year fixed rate mortgage 6.10%

Stocks are higher this morning on no real news. Bonds and MBS are down.

Jamie Dimon sees the Fed rising rates above 5% “I actually think rates are probably going to go higher than 5% … because I think there’s a lot of underlying inflation, which won’t go away so quick,” Dimon said Thursday on CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland. Much of this is due to oil and China “We’ve had the benefit of China’s slowing down, the benefit of oil prices dropping a little bit,” Dimon said. “I think oil gas prices probably go up the next 10 years … China isn’t going to be deflationary anymore.”

Existing home sales fell 1.5% MOM and 34% YOY to a seasonally adjusted annual rate of 4.02 million in December. “December was another difficult month for buyers, who continue to face limited inventory and high mortgage rates,” said NAR Chief Economist Lawrence Yun. “However, expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”

The median existing home price rose 2.3% YOY to $366,900. That sound to me like all of the activity is at the lower price points. Total housing inventory for sale was 970,000 units. Unsold inventory is a 2.9 month supply, which is historically super-low. All-cash buyers were 28% of sales. First-time homebuyers represented 31% of all sales, which was an improvement from 28% Properties remained on market for 28 days.

Fannie Mae and Freddie Mac have updated their LLPA matrices. These will go into effect in May 2023. The main change is that Fannie and Freddie reduced the penalties for low credit and high LTV. “These changes to upfront fees will strengthen the safety and soundness of the Enterprises by enhancing their ability to improve their capital position over time,” said Director Sandra L. Thompson. “By locking in the upfront fee eliminations announced last October, FHFA is taking another step to ensure that the Enterprises advance their mission of facilitating equitable and sustainable access to homeownership.”​​

Morning Report: Housing starts fall

Vital Statistics:

 LastChange
S&P futures3,919-26.50
Oil (WTI)79.970.47
10 year government bond yield 3.41%
30 year fixed rate mortgage 6.08%

Stocks are lower as investors fret about the state of the economy. Bonds and MBS are up.

Housing starts fell 1.9% MOM and 21.8% YOY to an annualized rate of 1.38 million. This was a touch above expectations. Building Permits fell 1.6% MOM and 29.9% YOY. This is not surprising given how lousy the home purchase market is. KB Home announced that their cancellation rate was so large, they were halting new projects and just working on the backlog.

On the plus side, mortgage rates are down over 1% compared to October – November 0f 2022. Homebuilders are cutting prices as well, which is good news for affordability.

Meanwhile, Elizabeth Warren is agitating for nationwide rent control using the FTC and HUD as levers to cap rents. No legislation required. I don’t think rent control has ever had the effect she wants (increasing supply and lowering costs), but maybe this time will be the charm. So, who wants to build an apartment complex at a 2% cap rate? Bueller?

The labor market remains tight as a drum. Initial Jobless Claims fell to 190,000 last week, which was the lowest level since the late 1960s when we had a military draft. We are seeing more dovishness out of the Fed speakers, as Harker and Logan want to moderate the pace of increases. Meanwhile Bullard and Lester want to keep rates higher for longer.

Here is a chart of initial jobless claims from 1967 – 1970.

Interesting stat out of China: The population fell in 2022. Since population growth is one of the biggest drivers of climate change, this probably takes the doomsday scenarios off the table if it continues a trend. Instead of 30 billion people by 2100, we might only get 10 billion.

Morning Report: Homebuilder sentiment improves

Vital Statistics:

 LastChange
S&P futures4,014 4.50
Oil (WTI)81.411.28
10 year government bond yield 3.43%
30 year fixed rate mortgage 6.20%

Stocks are higher this morning on better-than-expected inflation data. Bonds and MBS are up.

Inflation at the wholesale level fell 0.5% month-over-month according to the Producer Price Index. This comes after a 0.4% increase in October and a 0.2% increase in December. The decline was driven primarily by a decrease in energy prices. The index was up 6.2% on a YOY basis.

Stripping out food, energy and trade services the index rose 0.1% MOM in January and 4.6% YOY. Overall, it looks like inflation is on the way down, however as far as the Fed is concerned it wants to see the labor market come more in balance.

Homebuilder sentiment rose slightly in January, according to the NAHB / Wells Fargo Housing Market Index. This is after a string of declines driven by rising interest rates. “It appears the low point for builder sentiment in this cycle was registered in December, even as many builders continue to use a variety of incentives, including price reductions, to bolster sales,” said NAHB Chairman Jerry Konter, a home builder and developer from Savannah, Ga. “The rise in builder sentiment also means that cycle lows for permits and starts are likely near, and a rebound for home building could be underway later in 2023.” Remember that home construction is a classic early-stage cyclical and is one of the first sectors to recover after a recession.

Retail sales fell 1.1% in December, according to the Census Bureau. This follows a decline in November. On a year-over-year basis, retail sales rose 6.0% YOY, which means it was down about 0.5% once you take into account the 6.5% rise in the CPI. This doesn’t bode well for Q4 GDP growth since consumption is about 70% of GDP. The Atlanta Fed’s GDP Now model sees 4.1% growth in Q4, though it will be updated sometime today. This just seems out of step with the data out there, but perhaps it is explained by inventory build.

Mortgage Applications rose 27% last week as purchases rose 25% and refis rose 34%. These numbers include an adjustment for the holiday-shortened New Year’s holiday however falling rates are helping things. That said we have a long way to go to get to some semblance of normalcy.

“Mortgage application activity rebounded strongly in the first full week of January, with both refinance and purchase activity increasing by double-digit percentages compared to last week, which included the New Year’s holiday observance,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Despite these gains, refinance activity remains more than 80% below last year’s pace and purchase volume remains 35% below year-ago levels. Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”

Industrial production fell 0.7% in December, and manufacturing production fell 1.3%. Capacity Utilization fell from 79.4% to 78.8%. Again, I have to look at the Atlanta Fed’s estimate and I don’t see how this data comports with 4.1% GDP growth.

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Morning Report: Business activity declines in New York State

Vital Statistics:

 LastChange
S&P futures4,010-10.50
Oil (WTI)80.140.43
10 year government bond yield 3.57%
30 year fixed rate mortgage 6.19%

Stocks are lower this morning after Goldman Sachs’s earnings disappoint. Bonds and MBS are down.

The week ahead won’t have much in the way of market-moving data, although we will get retail sales on Wednesday which will be a report on the holiday shopping season and will be a big input into Q4 GDP. We will also get housing starts and existing home sales. Earnings from the financials will be a lot of the main news flow. The World Economic Forum will meet in Davos as well.

The US will hit the debt ceiling this week as well, which promises some kabuki theater from Washington as people make dire predictions over what would happen if the US defaults on its debt. Of course it won’t default.

Business Activity contracted sharply in New York State, according to the Empire State Manufacturing Report. We are back at levels seen during the lockdowns and the depths of the Great Recession. This was the fifth worst reading in the index’s history.

On the positive side, the prices paid and prices received indices dropped sharply. Inventory levels are back to normal as well.

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The FTC is looking to ban or severely restrict non-compete agreements. This could have some major reverberations in the mortgage banking business. These got overused in the past several years – low level employees in fast food restaurants were subject to them – but it will be interesting to see how industry reacts. Perhaps some LO comp will be deferred?

The economic effects of this will probably be to lift wage inflation, at least a little.

I published another article in my Substack last weekend, and talked about one statistic that jumped out at me. I didn’t mention it here. Check it out and please consider subscribing.

I am accepting ads for this blog as well, if you would like a mention. In addition, if you enjoy the content and would like a white label solution for your company, I would be interested in having a conversation.

Morning Report: Earnings season kicks off with the banks reporting

Vital Statistics:

 LastChange
S&P futures3,963-40.50
Oil (WTI)78.790.43
10 year government bond yield 3.48%
30 year fixed rate mortgage 6.15%

Stocks are lower as we kick off earnings season. Bonds and MBS are up.

Consumer sentiment improved in January, according to the University of Michigan Consumer Sentiment Survey. The reading on personal finances drove the increase based on higher incomes and lower inflation. These consumer sentiment surveys are highly influenced by gasoline prices, and the decline at the pump is helping things.

Inflationary expectations fell from 4.4% to 4% which is good news for those who want the Fed to take its foot off the brake. Consumer sentiment is still awful overall, stuck at the levels we saw during the Great Recession.

Wells reported a decline in fourth quarter earnings, however there were a lot of special charges which makes a QOQ and YOY comparison difficult. Revenues rose 0.7% QOQ and EPS fell 21% to $0.67. The company took provisions for CFPB settlements, home lending severance, and impairments in its venture capital business.

Delinquencies are starting to tick up, with provisions for credit losses and charge-offs up QOQ and YOY. Credit cards drove the increase. Mortgage originations fell 32% QOQ and 70% YOY to $14.6 billion. The press release didn’t address the exit from correspondent lending, but I am sure it will come up on the conference call.

JP Morgan reported earnings per share climbed 14% QOQ and 7.2% YOY to $3.57 per share. Like Wells, the company built up its reserve for loan losses and increased charge-offs. Mortgage originations fell 45% QOQ and 72% YOY to $6.7 billion.

Apartment rental rates rose 5% YOY according to data from Redfin. They were down 1.4% MOM and off 3.6% from the peak set in August. Some of this is seasonality, however the massive growth we saw in 2021 is over, and rents will generally lag home prices by 21 months or so. “Rents have room to fall. While they’ve cooled significantly from their peak, it still costs the typical renter 20% more to take on a new lease than it did two years ago,” said Redfin Economics Research Lead Chen Zhao. “An increase in the number of rentals on the market  should also cause rents to ease in the coming months. Rental supply is growing due to an influx of construction in recent years, ebbing household formation and a slow homebuying market, which is driving many homeowners to rent out their properties rather than sell.”

I launched my Substack over the weekend, where I took went over the market’s reaction to the jobs report and the main drivers. The Weekly Tearsheet will take a deeper dive into some of the happenings in the prior week, along with economic commentary. I hope you enjoy it and consider subscribing. If you use this professionally and can expense it, I hope you consider becoming a paid subscriber.

I am accepting ads for this blog as well, if you would like a mention. In addition, if you enjoy the content and would like a white label solution for your company, I would be interested in having a conversation.

Morning Report: Wells Fargo is dramatically shrinking its mortgage footprint

Vital Statistics:

 LastChange
S&P futures3,95212.50
Oil (WTI)76.351.24
10 year government bond yield 3.58%
30 year fixed rate mortgage 6.28%

Stocks are higher this morning on no real news. Bonds and MBS are up small.

Jerome Powell spoke yesterday and it doesn’t appear that he had much to say in terms of current monetary policy. The issue at hand was central bank independence. Powell acknowledged that rate hikes will be unpopular politically, but welcomed the absence of political control over monetary policy. I suspect this is temporary, and if the economy slows dramatically the Fed will see pressure from Congress to cut rates.

Powell also acknowledged that the Fed is getting pressure to “act on climate.” This means he is getting pressure from activists to use the Fed’s supervisory authority to discourage investment in fossil fuels. Climate Action 100 is a consortium of banks and investment firms that have pledged not to lend to energy companies, and I suspect the activists want the Fed to either explicitly prohibit fossil fuel lending or to use some other lever to discourage it. Powell pushed back on this: “But without explicit congressional legislation, it would be inappropriate for us to use our monetary policy or supervisory tools to promote a greener economy or to achieve other climate-based goals.  We are not, and will not be, a “climate policymaker.”

Mortgage Applications fell 1.2% last week as purchases fell 1% and refis fell 5%. Total applications are down 48% on a YOY basis and refis are down a whopping 86%. “Mortgage rates declined last week as markets reacted to data showing a weakening economy and slowing wage growth. All loan types in the survey saw a decline in rates, with the 30-year fixed rate falling to 6.42 percent. Purchase applications continued to be hampered by broader weakness in the housing market and declined slightly over the week, with the index slipping to its lowest level since 2014,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “There was an increase in refinance activity as a result of the 16-basis-point decline in rates, as both conventional and government refinance applications increased. However, the overall pace of refinance applications was lower than November and December’s 2022 averages, and over 80 percent lower than a year ago. Refinances were about 30 percent of all applications last week — well below the past decade’s average of 58 percent.”

Wells is drastically shrinking its mortgage footprint. It will exit correspondent and will only originate mortgages for its own clients and borrowers in minority communities. Not too long ago, Wells was the biggest mortgage banker in the US. “We are acutely aware of Wells Fargo’s history since 2016 and the work we need to do to restore public confidence,” [Chief Consumer Lending Officer] Santos said in a phone interview. “As part of that review, we determined that our home-lending business was too large, both in terms of overall size and its scope.”

Wells will also be significantly shrinking its servicing portfolio. It is amazing how much capacity is being wrung out of the mortgage business over the past year. This should translate into higher margins into 2023.

Are we seeing signs of a turn in housing? Perhaps. The Fannie Mae Home Purchase Sentiment Index increased in December, albeit it is barely higher than the all-time low set in October. “In December, the HPSI inched upward slightly, as consumers reported increased expectations that mortgage rates and home prices may decrease over the next year – perhaps reflecting recently observed declines in mortgage rates and average home prices,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “However, the HPSI remains very low by historical standards, particularly the ‘good time to buy’ component, and respondents continue to cite high home prices and unfavorable mortgage rates as the primary reasons for their pessimism. As we enter 2023, we expect affordability to remain the top challenge for potential homebuyers, as even small declines in rates and home prices – from the perspective of the buyer – may not produce sufficient purchasing power. At the same time, existing homeowners may continue to wait to list their properties, since many have already locked in lower mortgage rates, creating minimal incentive to sell and buy again until rates are more favorable. We think the resulting tension will contribute to a continued decline in home sales in the coming months.”

I launched my Substack over the weekend, where I took went over the market’s reaction to the jobs report and the main drivers. The Weekly Tearsheet will take a deeper dive into some of the happenings in the prior week, along with economic commentary. I hope you enjoy it and consider subscribing. If you use this professionally and can expense it, I hope you consider becoming a paid subscriber.

I am accepting ads for this blog as well, if you would like a mention. In addition, if you enjoy the content and would like a white label solution for your company, I would be interested in having a conversation.

Morning Report: Small Business Optimism falls

Vital Statistics:

 LastChange
S&P futures3,895-18.50
Oil (WTI)74.960.33
10 year government bond yield 3.60%
30 year fixed rate mortgage 6.28%

Stocks are lower as we await Jerome Powell’s speech in Sweden. Bonds and MBS are up.

Small Business Optimism declined in December, according to the NFIB Small Business Optimism Index. “Overall, small business owners are not optimistic about 2023 as sales and business conditions are expected to deteriorate,” said NFIB Chief Economist Bill Dunkelberg. “Owners are managing several economic uncertainties and persistent inflation and they continue to make business and operational changes to compensate.” You can see in the chart below, we are at the lowest levels in nearly a decade.

Despite the overall gloom, there were some positive points in the survey. Inventories are back in balance, which means the supply chain issues of the post-pandemic period are largely in the rear view mirror. The number of companies raising prices also fell, and employers continue to plan to hire more workers.

Generally speaking companies do expect a recession in 2023 and are taking steps to prepare themselves for it.

Minneapolis Fed President Neel Kashkari wrote an article on inflation which discusses what the Fed missed in 2021 and lays out what it might do going forward. His point is that when prices rise, both supply and demand should adjust. Rising prices should decrease demand and increase supply. The problem is that supply hasn’t increased.

He likens it to surge pricing on ride sharing apps. When it rains more people would rather ride than walk. Prices rise. However what happens when every available driver is already working? Supply doesn’t increase. And that is where we are now. In economics terms, the supply curve is vertical. Increased demand just increases prices.

If this sounds familiar to old-timers, they might recognize the term “supply-side economics” from the late 1970s and the Reagan Administration. We had this problem during the 70s, when US manufacturing capacity was more or less maxxed out, and rising demand simply meant higher prices.

Supply side economics incentivized producers to increase capacity, which would address the lack of incremental supply (hence the name “supply-side)” The government cut taxes, which made it more likely that new projects would be profitable (or NPV-positive in B-school jargon) and it also changed the rules on depreciation which allowed companies to recoup capital expenditures quicker through bigger up-front tax deductions. While the term “supply side” has become a pejorative on the left, that was the logic of it.

It is interesting to see guys like Neel Kashkari who were too young to remember the 1970s inflation issues start to think about supply side economics. Global economies have done the Keynesian pump-priming thing for the past 15 years, which was more or less what we did from 1965 – 1980. Similar results. So perhaps a new, re-branded supply-side economics will become in vogue again.

I launched my Substack over the weekend, where I took went over the market’s reaction to the jobs report and the main drivers. The Weekly Tearsheet will take a deeper dive into some of the happenings in the prior week, along with economic commentary. I hope you enjoy it and consider subscribing. If you use this professionally and can expense it, I hope you consider becoming a paid subscriber.

I am accepting ads for this blog as well, if you would like a mention. In addition, if you enjoy the content and would like a white label solution for your company, I would be interested in having a conversation.