07 Dec Cautiously floating
The Jobs report came out with 146,000 new jobs versus estimates of 90,000. But the big surprise was the unemployment rate at 7.7%, which is the lowest figure seen in 4 years. While these are the headline numbers, the ,Labor Force Participation Rate dropped by .2%. That .2% is equal to approximately 350,000 people that decided to stop looking for employment. This is also the lowest LRPR reading in 31 years. The other seasonal factor considered shows the biggest increase in jobs was in the retail sector. Sound like holiday seasonal hiring? Previous jobs readings for October and September were also revised lower by 49,000. All in all, not really a great report. Stocks spiked higher initially at the open, but the gains are modest for now. mortgage bonds dropped like a rock at the open, but have now moved back above their moving averages thanks to the Fed bond buying. We will start with a floating bias..