{"id":64138,"date":"2022-10-05T09:09:44","date_gmt":"2022-10-05T13:09:44","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=64138"},"modified":"2022-10-05T09:09:44","modified_gmt":"2022-10-05T13:09:44","slug":"coffee-with-greta-this-is-not-what-the-fed-wants-to-see","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/10\/05\/coffee-with-greta-this-is-not-what-the-fed-wants-to-see\/","title":{"rendered":"Coffee With Greta: This Is Not What the Fed Wants to See"},"content":{"rendered":"

DJIA Futures: <\/b>-292 (-1.0%)<\/span><\/p>\n

SPX Futures: <\/b>-37 (-1.0%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-120 (-1.0%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are falling after a big two-day rally as new data shows the labor market maintaining strength amid the Fed\u2019s inflation fight.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Private Sector Adds More Jobs Than Expected in September<\/span><\/h2>\n

Private employers added more workers than expected in September in a sign of the labor market maintaining strength in the face of the Fed\u2019s aggressive tightening.\u00a0<\/span><\/p>\n

Payroll firm ADP reported the U.S. private sector added 208,000 jobs last month vs 200,000 expected.<\/span><\/p>\n

That was up from the revised 185,000 in August.\u00a0<\/span><\/p>\n

Trade, transportation, and utilities saw the largest growth adding 147,000 workers.\u00a0<\/span><\/p>\n

Wages also continued to rise with annual pay up 7.8% year over year.<\/span><\/p>\n

This data is not what the Fed wants to see in its fight against inflation.\u00a0<\/span><\/p>\n

Central Bankers have previously said they need to see a slowdown in the labor market for inflation to slow.<\/span><\/p>\n

The Labor Department releases the official September jobs report on Friday.\u00a0<\/span><\/p>\n

That\u2019s expected to show the economy added 275,000 jobs last month with the unemployment rate unchanged at 3.7%.<\/span><\/p>\n

Trade Deficit Hits 15-Month Low<\/span><\/h2>\n

The U.S. trade deficit fell to a 15-month low in August.\u00a0<\/span><\/p>\n

The Commerce Department reported the U.S. ran a deficit of $67.4 billion.\u00a0<\/span><\/p>\n

That was down 4.3% from July, the fifth monthly decline in a row.\u00a0<\/span><\/p>\n

It was also lower than economists\u2019 expectations for $67.7 billion.\u00a0<\/span><\/p>\n

Exports fell 0.3% to $258.9 billion while imports dropped 1.1% to $326.3 billion.\u00a0<\/span><\/p>\n

Mortgage Demand Plummets<\/span><\/h2>\n

Mortgage demand plummeted last week as higher rates and Hurricane Ian pressured buyers.\u00a0<\/span><\/p>\n

The Mortgage Bankers Association reported total application volume dropped 14.2% weekly, to the lowest level since 1997.\u00a0<\/span><\/p>\n

Purchase applications fell 13% weekly and 37% year over year.\u00a0<\/span><\/p>\n

Refinance applications were down 18% weekly and 86% annually.\u00a0<\/span><\/p>\n

The drop came as the average 30-year fixed contract rate rose to 6.75% from 6.52%, the highest since 2006.\u00a0<\/span><\/p>\n

The higher rates pushed more homebuyers to turn to adjustable-rate mortgages.\u00a0<\/span><\/p>\n

ARMs made up 11.8% of the mortgage applications last week, up from 8.5% a month ago and around 3% at the start of 2022.\u00a0<\/span><\/p>\n

Oil Prices Flat as OPEC+ Meets<\/span><\/h2>\n

Oil prices are flat today as OPEC+ meets to consider a production cut.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are just above $86.50 bbl while Brent crude futures are just under $92 bbl.\u00a0<\/span><\/p>\n

Sources told Reuters OPEC+ will consider output cuts as large as 2 million barrels per day at today\u2019s meeting.\u00a0<\/span><\/p>\n

The American Petroleum Institute reported Wednesday that U.S. crude inventories fell by 1.8 million barrels last week and gasoline inventories dropped by 3.5 million barrels.<\/span><\/p>\n

The Energy Information Administration reports official supply levels later today.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • Twitter <\/b>(TWTR) shares surged 22.2% on Monday after <\/span>Tesla <\/b>(TSLA) CEO Elon Musk agreed to go through with his purchase of the company. In a statement, Twitter said it had received a letter from Musk\u2019s lawyers saying he intends to proceed with the transaction. The deal is expected to close as soon as Friday with Musk purchasing Twitter at the agreed-upon price of $54.20 per share. TWTR shares are down 1.4% ahead of the open while TSLA is down 2%.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: -292 (-1.0%) SPX Futures: -37 (-1.0%) NASDAQ Futures: -120 (-1.0%) Good morning friends! Futures are falling after a big two-day rally as new data shows the labor market maintaining strength amid the Fed\u2019s inflation fight. Let\u2019s get right to it! Private Sector Adds More Jobs Than Expected in September Private employers added more workers than expected in September in a sign of the labor market maintaining strength in the face of the Fed\u2019s aggressive tightening.\u00a0 Payroll firm ADP reported the U.S. private sector added 208,000 jobs last month vs 200,000 expected. That was up from the revised 185,000 in August.\u00a0 Trade, transportation, and utilities saw the largest growth adding 147,000 workers.\u00a0 Wages also continued to rise with annual pay up 7.8% year over year. This data is not what the Fed wants to see in its fight against inflation.\u00a0 Central Bankers have previously said they need to see a slowdown in the labor market for inflation to slow. The Labor Department releases the official September jobs report on Friday.\u00a0 That\u2019s expected to show the economy added 275,000 jobs last month with the unemployment rate unchanged at 3.7%. Trade Deficit Hits 15-Month Low The U.S. trade deficit fell to a 15-month low in August.\u00a0 The Commerce Department reported the U.S. ran a deficit of $67.4 billion.\u00a0 That was down 4.3% from July, the fifth monthly decline in a row.\u00a0 It was also lower than economists\u2019 expectations for $67.7 billion.\u00a0 Exports fell 0.3% to $258.9 billion while imports dropped 1.1% to $326.3 billion.\u00a0 Mortgage Demand Plummets Mortgage demand plummeted last week as higher rates and Hurricane Ian pressured buyers.\u00a0 The Mortgage Bankers Association reported total application volume dropped 14.2% weekly, to the lowest level since 1997.\u00a0 Purchase applications fell 13% weekly and 37% year over year.\u00a0 Refinance applications were down 18% weekly and 86% annually.\u00a0 The drop came as the average 30-year fixed contract rate rose to 6.75% from 6.52%, the highest since 2006.\u00a0 The higher rates pushed more homebuyers to turn to adjustable-rate mortgages.\u00a0 ARMs made up 11.8% of the mortgage applications last week, up from 8.5% a month ago and around 3% at the start of 2022.\u00a0 Oil Prices Flat as OPEC+ Meets Oil prices are flat today as OPEC+ meets to consider a production cut.\u00a0 West Texas Intermediate crude futures are just above $86.50 bbl while Brent crude futures are just under $92 bbl.\u00a0 Sources told Reuters OPEC+ will consider output cuts as large as 2 million barrels per day at today\u2019s meeting.\u00a0 The American Petroleum Institute reported Wednesday that U.S. crude inventories fell by 1.8 million barrels last week and gasoline inventories dropped by 3.5 million barrels. The Energy Information Administration reports official supply levels later today. In Case You Missed It Twitter (TWTR) shares surged 22.2% on Monday after Tesla (TSLA) CEO Elon Musk agreed to go through with his purchase of the company. In a statement, Twitter said it had received a letter from Musk\u2019s lawyers saying he intends to proceed with the transaction. The deal is expected to close as soon as Friday with Musk purchasing Twitter at the agreed-upon price of $54.20 per share. TWTR shares are down 1.4% ahead of the open while TSLA is down 2%.<\/p>\n","protected":false},"author":41,"featured_media":64144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-64138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=64138"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64138\/revisions"}],"predecessor-version":[{"id":64145,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64138\/revisions\/64145"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/64144"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=64138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=64138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=64138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}