Daily Market Update 8/5/11

Mortgage rates inched higher Friday following a better than expected Employment Report.  The economy added 117,000 jobs in July, beating the consensus forecast of 85,000.  The Unemployment Rate unexpectedly declined to 9.1%.  Average Hourly Earnings, a proxy for wage growth, increased at a 2.3% annual rate, which was higher than expected.  Although the employment picture remains weak, today's data exceeded expectations in nearly every area, pushing stocks modestly higher and hurting bonds and mortgage-backed securities.  The big event next week will be Tuesday's FOMC meeting of the Fed.  While no rate change is expected, investors will be looking for indications that the Fed may be considering other stimulative measures.  Also next week, Retail Sales figures for July will be released on Friday.  No other key data will be released today.