Daily Market Update 9/5/08

The Unemployment Rate jumped to a five year high of 6.1% in August, helping to push mortgage rates to their lowest levels in 3 months. Non-farm Payrolls decreased by a larger than expected 84,000 last month. Stocks moved sharply lower on the report, extending yesterday's losses. The dollar strengthened, and has now risen 11% versus the euro in recent months. Oil prices dipped to $106 pb, representing a 28% decline since peaking in early July. Next week contains relatively little economic news until Friday's release of the Producer Price Index and Retail Sales data for August.