Locking Bias

Stocks are modestly positive after the ISM Services Index was reported at a 6 month high and the ADP jobs number was above what was expected.  This sets the stage for Friday’s big jobs report, which could give leverage to either political side for the weekend depending on the number.  mortgage bonds continue to hover around the all-time highs, creating more short term risk of rates moving higher.  Given the past responses of the market, stocks seem to rally regardless of whether the jobs report number is good or bad.  With rates at the all time lows, we suggest locking ahead of the report in order to avoid the turbulence.