Locking is a safe play today

The S&P 500 closed out April at the top once again, but today’s lower than expected ADP Jobs report has stocks pulling back.  ADP reported 119,000 new jobs added, but estimates were set at 155,000.  In addition, Marchs report was revised lower from 158,000 down to 131,000.  Last month’s non-farm jobs report was a meager 88,000, so this adds pressure to Fridays monthly report as well.  The ISM Index was slightly lower than expected, but today’s big news will be the Fed announcement at 2pm ET.  While rates are not expected to rise, Ben Bernanke’s comments will be scrutinized.  Specifically, any hint on winding down QE.  Given the recent reports, it looks to remain full steam ahead, but that adds weight to the argument that QE tapering will be that much more painful.  mortgage bonds are pushing up against January highs, and are in an overbought state.  While they could move higher, a pullback would be a healthy sign.  Locking in is the safe play for short term transactions.