http://MikesDailyMarketReport.com: The ADP Report came in strong with 195k new Jobs in the Private Sector. Weekly Jobless Claims came in at 217k. Q2 Productivity dropped from 3.1% in Q1 to 2.3% in Q2. Also, Unit Labor Costs rose 2.6% in Q2. Markit Services PMI dropped from 50.9 in July to 50.7 in August; however, the more closely watched, ISM Non-Manfacturing Index, rose from 53.7% to 56.4%. Lastly, Factory Orders increased by 1.4% in July. Stocks are way up this morning on the bullish data and announcement that the US and China will sit down again on October 4th in DC to work on the Trade Negotiations. Even though, it's nothing new, Investors REALLY like the Optimism! MBS is way down this morning, -41bps, which has led to worse pricing for Mortgage Rates. Yields have really spiked, up to 1.59%. If you're floating in a transaction, then you may want to lock in, as we may see this pattern for a little bit. Long-term, I see rates coming down, but we will have our ebbs and flows in both directions (like a yo-yo).
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