Markets rise on ADP jobs and Europe data
Posted September 6, 2012
The ADP Employment Report for August led the way this morning with its biggest jump in five months. The report indicated that 201,000 new private sector jobs were created in August, and the markets jumped on that figure with the Dow racing to double digit gains by early Thursday. This report is a prelude to Friday’s Unemployment number, which will be very closely watched. We could experience significant market and bond volatility if the delivered Friday figure arrives far from consensus estimate.
ECB President Mario Draghi had some positive comments out of Europe today, stating that “the Euro is irreversible”, and that “We will have a fully effective backstop to avoid destructive scenarios with potentially severe challenges for price stability in the euro area”. These comments provided some global confidence and helped put upward pressure on US Treasury Yields.
Mortgage Applications dropped 2.5% for the week ending August 31st, despite mortgage rates trending lower, according to the most recent index out from the MBA.
Weekly jobless Claims fell to their lowest level in a month on Thursday. This latest report hopefully indicates that the labor market is starting to gain traction as we head into the fall.
I had lunch today with a local Real Estate Publisher who told me that the mood is very festive within the Triangle building community as we head into the fall buying and selling season. The Parade of Homes looks to have one of its strongest showings in years, which is a sign that builders and realtors are bullish on the future of Triangle Housing fundamentals.