Daily Market Update 11/8/13

Rates moved higher Friday following the release of a surprisingly strong Employment Report for October.  The economy added 204,000 jobs last month in spite of the government shutdown.  A gain of 120,000 had been expected.  The Unemployment Rate, which is calculated differently and counts the furloughed government workers as unemployed, rose to 7.3%.  Average Hourly Earnings, a proxy for wage growth, fell short of expectations.  Core PCE price index, the Fed’s preferred measure of inflation, rose 0.1%, matching forecast.  Consumer Sentiment fell to 72.0, far below expectations.  For the week, conventional 30-year fixed rates rose by 0.25%, as many investors believe the latest Employment figures will allow the Fed to begin scaling back bond purchases in the coming months.  No other key data will be released today.  The market will be closed on Monday in observance of Veteran’s Day.  Have a great weekend!

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