Stocks were mixed in overnight trading and were down sharply in early trading. Treasury yields we flat in overnight trading but rose following the Nonfarm payroll report. Yields were holding their overnight ramp in early trading.
Nonfarm payrolls rose by 1.371 million matching expectations even though one-quarter of the jobs created were from temporary census workers. Average hourly earnings rose +0.4% in August and +4.7% from this time last year. The average weekly hours worked rose slightly to 34.6 hours and the labor force participation rate edged higher to 61.7% in August. The unemployment rate fell to 8.4% and the U6 unemployment rate fell to 14.2%.
Stocks gained back some of their losses but closed in the red going into the holiday weekend. Treasury yields were slammed higher most of the day until buyers stepped in to put a halt to the selling.