80,000 new jobs in June

The Labor Department reported that the U.S. economy added 80,000 new jobs in June, and that was below the already low estimate of 100,000.  This is pressuring stocks lower and bonds higher for now, but it also adds to the expectation that the Fed will virtually have to implement some form of additional monetary stimulus very soon.  mortgage bonds have touched a new high which puts interest rates at their all time lows once again.  Even though rates are as low as they have ever been, investors have limited the degree of lower rates.  That indicates their fear that the markets could turn very quickly upon any announcement by the Fed.  We will suggest a locking bias at this time.