The U.S. jobs report was released earlier this morning showing better than expected numbers with stronger job growth than the past two months' gains. The report showed the non-farm payroll number above 180,000 and unemployment rate falling to 5%, hitting the lowest it’s been since April 2008. The numbers make an interest rate increase in December even more likely. This news comes after Janet Yellen, Chair of the Federal Reserve, described an interest rate increase as a great possibility at the Fed's monthly meeting. Prior to the jobs report, the market had the odds of a December rate increase at nearly 60%. Revised estimates have raised this number to 80%.
The strong report, and a stronger dollar, has a bearish impact on the stock market, commodities, and the treasuries. Following the report, WTI fell below $45 a barrel and product futures dropped 2 to 3 cents, reversing the gain saw earlier.
The rig count is due later today from Baker Hughes, showing the number of active rigs in the U.S. The rig count was down 16 as of the end of last week and down a total of almost 30 from September.