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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   1.572%  
  Support   1.595%  
  Resistance   1.268%  
  FN 2.5% Coupon   104.06 (+0.08)  
  Friday, May 7, 2021

US Stocks Climb As Job Growth Disappoints

The market opened today's session with treasuries higher across all maturities. The 10-Year Treasury yield is currently at 1.5205, 4.91 bps lower than prior closing of 1.5696.
US stocks climbed after weaker-than-expected job data stunned investors, easing concerns regarding high inflation and stimulus cutback. The S&P 500 rose 0.7% with Tech shares leading gains, while financial, industrial, and commodity stocks lagged behind. The Nasdaq 100 rose 1.1%, outperforming major equity benchmarks. Stay-at-home stocks staged a comeback with Roku Inc. jumping 13%, Zoom Video Communications Inc. adding 3.5%, and Peloton Interactive Inc. rising 5%. US job growth significantly undershot forecasts in April, suggesting that difficulty attracting workers is slowing momentum in the labor market and challenging the economic recovery. Payrolls rose 266,000 from a month earlier, according to a Labor Department report Friday that represented one of the largest downside misses on record. The unemployment rate edged up to 6.10%, though the labor-force participation rate also increased. The report stunned investors as Treasury yields plunged and the dollar turned sharply lower. The eurodollar market pushed back its pricing for a Federal Reserve rate increase to mid-2023.
The curve has bull-flattened with UST 10-Year yield down 4.91 bps.
This Week's Events
  05/03 Markit US Manufacturing PMI 06:45 Apr F 60.70 60.50 60.60 -  
  05/03 Construction Spending MoM 07:00 Mar 1.60% 0.20% -0.80% -0.60%  
  05/03 ISM Prices Paid 07:00 Apr 86.00 89.60 85.60 -  
  05/04 Factory Orders 07:00 Mar 1.30% 1.10% -0.80% -0.50%  
  05/04 Durable Goods Orders 07:00 Mar F 0.50% 0.80% 0.50% -  
  05/04 Durables Ex Transportation 07:00 Mar F 1.60% 1.90% 1.60% -  
  05/05 MBA Mortgage Applications 04:00 30 Apr - -0.90% -2.50% -  
  05/05 ADP Employment Change 05:15 Apr 850k 742k 517k 565k  
  05/05 Markit US Services PMI 06:45 Apr F 63.10 64.70 63.10 -  
  05/05 Markit US Composite PMI 06:45 Apr F - 63.50 62.20 -  
  05/06 Initial Jobless Claims 05:30 1 May 538k 498k 553k 590k  
  05/06 Continuing Claims 05:30 24 Apr 3620k 3690k 3660k 3653k  
  05/07 Average Hourly Earnings MoM 05:30 Apr 0.00% 0.70% -0.10% -  
  05/07 Average Hourly Earnings YoY 05:30 Apr -0.40% 0.30% 4.20% -  
  05/07 Change in Nonfarm Payrolls 05:30 Apr 1000k 266k 916k 770k
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  This information is provided solely for informational use and is not intended as an advice for trading or investment purposes in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.  
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