Stocks started the day significantly lower but have since recouped much of what was lost. We anticipate today to be light, as many traders are still taking time off to celebrate the New Year. However, tomorrow will bring important news, with ADP set to release their number of job creations for the month of December. The market is currently expecting 175,000, which seems to be a high projection to me. However, we will see.
Friday will be the big day, with the Bureau of Labor Statistics (BLS) providing their report on the labor market. With volatility in the U.S. stock market at high levels, it will be interesting to see if this has impacted the psychology of business owners. With many considering this to be the beginning of a bear market, it seems logical to assume that many businesses will decide to hunker down and get by with their current level of staff.
Mortgage bonds remain on an upward trajectory, which is putting downward pressure on mortgage interest rates. I don’t anticipate any significant improvements today. We could see Friday’s BLS report push bonds above the current ceiling. However, in the meantime, if you are closing soon, now is a great time to lock.