Stocks under pressure
Posted April 9, 2012
The stock market was closed Friday in observance of Good Friday, so we weren’t able to experience its reaction to the dismal jobs report which was released Friday morning. Monday we saw that reaction, and while it’s not pretty, it is somewhat expected given the huge miss that the number delivered.
The DJIA took it on the chin, trading down over 140 points in early trading Monday. The 10-Year Yield has held its ground from Friday as well, with yields now trading at 2.02 (we closed at 2.05 Friday afternoon after huge movement in reaction to the much lower than expected jobs number). While the poor jobs report data is not an immediate reactionary point for QE3, it certainly gives the Fed something to chew on for the next couple of weeks as they prepare for their next meeting at the end of the month.
Also, it’s not just jobs that are of concern for the markets. It’s Europe. And as long as there seems to be global concern over their debt crisis, then it’s likely we’ll see some good news for treasuries and mortgage rates in the coming weeks and perhaps months.
As an aside, the FHA increased its upfront mortgage insurance premium (UFMIP) Monday. The new premiums increase from 1 percent to 1.75 percent for all new FHA loans. No other economic data Monday, but the rest of the week looks very busy in terms of data releases.