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Jobs Report Postponed until Friday, May 8

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Updated

Jobs report will be the highlight of the week

The jobs report should have gone out last Friday, May 1. But for some reason, the BLS (U.S. Bureau of Labor Statistics) decided to postpone it until this Friday, May 8. Economic data have been generally weak, and the Fed certainly has an excuse not to move in June. So unless this report is unusually good with strong wage growth, the bond market will probably take it in stride.

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Economic data this week

Let’s look at a rundown of this week’s economic data.

Monday, May 4, 2015:

  • ISM New York
  • Factory Orders

Tuesday, May 5, 2015:

  • Trade balance
  • Markit US Services PMI
  • Markit US Composite PMI
  • IBD / TIPP Economic Optimism
  • ISM Non-Manufacturing Composite

Wednesday, May 6, 2015:

  • MBA (Mortgage Bankers Association) mortgage applications
  • ADP Employment Change
  • Non-farm Productivity
  • Unit Labor Costs

Thursday, May 7, 2015:

  • initial jobless claims
  • Bloomberg Consumer Comfort Index
  • Challenger Job Cuts
  • Consumer Credit

Friday, May 8, 2015:

  • Non-farm Payrolls
  • Unemployment Rate
  • Average Hourly Earnings
  • Average Weekly Hours
  • Labor Force Participation Rate
  • Wholesale Inventories
  • Wholesale Sales

Earnings reports this week

Tuesday, May 5, 2015:

Wednesday, May 6, 2015:

Friday, May 8, 2015:

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Impact on mortgage REITs

REITs such as MFA Financial (MFA) and American Capital Agency (AGNC) will listen closely to Annaly Capital’s earnings. Annaly is the best comparison for AGNC. Other than that, the employment report will loom large as investors try to determine whether the Fed raises rates in June or stands pat.

Impact on homebuilders

Builders like Lennar (LEN) and PulteGroup (PHM) will focus on the jobs report and perhaps the ISM Non-Manufacturing Index. There really isn’t much for homebuilders to sink their teeth into this week.

Investors interested in trading in the mortgage REIT sector through an ETF should look at the iShares Mortgage Real Estate Fund (REM). Investors interested in making directional bets on interest rates should look at the iShares 20+ Year Treasury Bond ETF (TLT).

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