Daily Market Update 11/2/12

Mortgage rates were little changed Friday following this morning's closely watched Employment Report.  After a brief sell off, mortgage-backed securities recovered from early losses.  The economy added 171,000 jobs in October, well above the consensus forecast of 125,000.  The Unemployment Rate increased to 7.9%, in line with expectations, due to an increase in the size of the labor force.  Average Hourly Earnings, a proxy for wage growth, was unchanged from September, which was weaker than expected.  Overall, the employment data was stronger than forecast.  Separately, Factory Orders rose 4.8% last month, slightly below expectations.  No other key data will be released today.  Next week's presidential election will likely overshadow all other economic news.