Another update for you before we get to the main content for the day...

The MBS market has picked up perhaps a tick or two since earlier this morning.  Although jobless claims were over 400k, the level NFP number is buoying stocks still.  Don't count out market psychology.  We "want" to see the market make sense, and for stocks to realize just how crappy the outlook is, which would allow MBS to improve, but it's Independence day weekend, and as we've been talking about all week, the stock market is just itching for a reason to rally.

So although I do, in fact, feel that the stock market optimism (whether or not it sticks around) is not justified, we can't count out market psychology when it comes to wanting to rally off tepid data after days of losses and going into a sunny, patriotic weekend.

The 10AM data could shift the momentum, so stay tuned for the full report after that.