Phil Grossfield's Blog


Jobs Report Tomorrow – The Dalai Lama – Game 1 NBA Tonight!

Game 1 Tonight!  
Who are you taking?  It’s not the Warriors versus the Cavaliers…it’s the Warriors versus Lebron James.  And despite the talent of the Warriors as a team, their lack of experience against the best player in the league (and maybe the best player ever) might not be enough.  Here are 5 reasons to expect one of the best NBA Championship Series of all time and it starts TONIGHT!

My Market update:

The 30-year Fannie Mae bond is up +25bps since yesterday’s close.  Generally a lender’s pricing improves when the bond is being bought, like this morning.

I’ve been absent all week from following the market with any detail other than watching rates/pricing get worse and worse.  Suffice it to say that overseas concerns I identified last week are mainly responsible.  But tomorrow’s Jobs Report is a big one for bonds and therefore for the short-term future of our rates/pricing.

It is expected that 210,000 new jobs were created in May while unemployment stays stagnant. Simply put, if the Jobs Report indicates more new jobs than expected, and/or decreased unemployment, it tells traders that the economy is stronger and therefore investing in stocks rather than bonds is advisable which results in rates getting worse.  Conversely,less new jobs than expected and/or increased unemployment tells traders that the economy is weak and therefore investing in bonds is safer which results in rates improving.

Economists of high intelligence can easily make an argument that the economy is either weaker or stronger and there is an abundant of market data to support each.  There really is no way of knowing for sure…but if you know, please tell me so I can buy a LILY.

One response to “Jobs Report Tomorrow – The Dalai Lama – Game 1 NBA Tonight!

  1. Bernie June 5, 2015 at 8:28 pm

    The employment numbers are a little lopsided. unemployment went up to 5.5%. 280,000 jobs were created, but we lost 400,000 jobs. The participation rate went up from 62.8 to 62.9 % which is good except those are part time jobs and or people working 2-3 jobs because they cannot find full time work. The stock market loves numbers. However hard core reality says something completely different. Here is the real wet blanket on this. Obama’s amnesty program pays businesses $4,000 to hire just one illegal alien. Who is getting thrown to the back of the bus here???? If I am a business, hire the guy who is more qualified or get a bonus check from the govt.?

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