Stocks are setting new all-time high records, as the country mourns those impacted by the tragedy in Las Vegas last night. Markets clearly are discounting any reports of ISIS being involved or this being linked to any terrorist activity at all. Had terrorism been a concern, we would have expected a sharp decline in stock prices and mortgage bonds receiving the benefit. As tragic as this event was, it appears to be a one-off lone shooter without political motives.
This week is “jobs week”, with ADP scheduled to release their estimate of new hires for the month of September and the more impactful report from the Bureau of Labor Statistics (BLS) announcing their estimate on Friday. With the significant flooding around the country, estimates have been reduced to just 95,000. This low level could even prove to be high when you also factor in the number of summer jobs that came to an end in the month. Either way, it will be an interesting report that many will discount if low.
Bonds continue to remain in a weak state. As a result, we will maintain our locking bias.