Its back to business after a long holiday weekend, and economic uncertainty continues to dominate the news. US/Syria conflict has been added to the recipe, and potential talks of any US strike raises tension around the globe. The Dow has reacted early on today by starting out up 100 points (no US strike) and now is seen in the red after Obama's speech and intent to pursue military force.
This upcoming Friday 9/6 brings us the biggest Jobs report we have seen this year. Tapering is still on the table (Fed's way of winding down bond investments) and any report that is in line with consensus will result in significant bond/Treasury sell-off. (Bad for mortgage rates)
The Fed is expected to reduce bond purchases by $10 Billion to $20 Billion monthly (currently at $85 B month), and the only question now is, not if; but when?? The consensus calls for 180,000 jobs new jobs in August and any miss will allow the guessing game to continue until the Fed meeting Sept 18-19.
Rates have continued to rise since May, and economic data continue to show growth in US regardless of the recent spike in rates. It may be a little too early to base that decision, but Friday's Jobs report will help paint the picture a little bit clearer.
http://www.buythechi.com/
