Suggest locking ahead of tomorrow’s jobs report

Stocks jumped higher out of the gate this morning as investors appeared starved for the slightest bit of good news.  Initial Jobless Claims were lower at 363,000 versus the 375,000 estimate, the ADP Employment Report showed 158,000 new jobs versus a 135,000 expectation, and Consumer Confidence came in at a 4 year high.  That was enough to push the Dow higher by almost 150 points. The move higher in stocks puts pressure on mortgage bonds.  However, stock indexes are still below the levels they saw during September and most of October, and considering the significant Fed intervention, are not performing as well as many had hoped.  Friday’s Labor Department Job’s report may be the catalyst to push things one way or the other.  A better than expected number may not be such a big surprise given the low target of 125,000, but all the other factors like the light trading volume, the unknown impact of Sandy, and the presidential election make for a very volatile period.  We will advise locking for short term transactions ahead of tomorrow’s report.