STOCKS WEATHER JOBS JOLT... Friday, a blockbuster July jobs report rattled traders worried it would encourage the Fed to hike rates aggressively. But calm prevailed, with two major stock indexes up, one down a tick for the week.
With the 528,000 jobs added in July, nonfarm payrolls are finally higher than they were pre-pandemic, with 3.5% unemployment back to its pre-pandemic low. Too bad 5.2% wage growth isn't keeping up with 9.1% inflation.
Investors were buoyed by a drop in commodity prices and by corporate earnings largely better than feared. ISM Non-Manufacturing gained, ISM Manufacturing dipped, but both sectors remain in expansion territory.
The week ended with the Dow down 0.1%, to 32,803; the S&P 500 UP 0.4%, to 4,145; and the Nasdaq UP 2.2%, to 12,658.
Anticipating bigger Fed rate hikes, bonds sank, the 30-year UMBS 4.5% dropping 0.97, to $100.28. Yet the national average 30-year fixed mortgage rate fell for the third straight week in Freddie Mac's Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… The Q2 home ownership rate has increased for five straight quarters, showing buyers are finding paths to home ownership despite the headwinds, with households under 35 years old driving the growth.