A SWING… AND A MISS! Not in the heated Major League Baseball playoffs, but a big “whiff” for the highly anticipated Employment Report arriving last Friday morning. Although the “whisper number” in the pits had reached as high as 250,000 new job creations… the Report stepped to the plate and disappointed, coming in at 96,000 new jobs created in September, missing the 150,000 mark that had been expected by economists. Bonds enjoyed the bad outlook and improved sharply on the news, bringing the best gains made in a day since August 6th… which was also brought on by a missed Jobs number. Home loan rates improved by about .125% on Friday alone.

But Friday’s reaction was slightly tempered, as Federal Reserve Governors Bernanke and McTeer had indicated their suspicions that the number wouldn’t be a big one. Bernanke went a step further yet, stating that if the economy continued to be soft, the Fed would also soften their approach to rate hikes. On the other hand, Treasury Secretary Snow weighed in on the Jobs data, saying he feels the US economy is coming through the soft patch and has survived the worst of the "body blows."

AND SPEAKING OF BODY BLOWS… ARE YOU AMONG THE MILLIONS OF AMERICAN’S WHO HAVE SUFFERED FROM THE FLU? WITH VACCINATION SHOTS ALREADY APPROACHING A SHORTAGE… DON’T MISS SOME SURPRISING TIPS ON PROTECTING YOURSELF FROM THE FLU IN THIS WEEK’S MORTGAGE MARKET VIEW.

The markets will be closed Monday, but Bonds could see some light selling pressure once trading resumes. Traders may take some money “off the table” after Friday’s nice run higher. But overall, the dismal Employment Report should set a tone for trading in the days and weeks to come. Economic news in recent days has been somewhat soft, including the disappointing Jobs number and oil prices busting through the $50 mark, so Traders will be watching closely for any new clues that might cause a change in trend. Home loan rates should remain stable until Thursday and Friday’s economic calendar gives Traders something more to chew on.

One more US Presidential debate is behind us… and the polls seem to indicate that the race between Bush and Kerry is in a dead heat. A sense of uncertainty is likely to settle over the markets until November 2nd declares a winner. Financial markets dislike uncertainty in general, so Bonds may trade in a volatile manner over the next month in advance of the Presidential Election.

Bottom Line: Home loan rates should remain fairly stable until more economic news arrives on Thursday and Friday.

A headache and sore throat are not just symptoms of those on the campaign trail today. Flu season wreaks havoc on the health of up to 50 million Americans each year, hospitalizing over 100,000 and killing over 36,000 from the flu and its complications.

The flu season normally runs from December to March, and one of the best ways to prevent the flu is by getting a flu shot. Typically 100 million Americans follow this advice and receive vaccinations. But it was recently announced that nearly 50 million Americans would have to go without one. This is because Chiron Corporation, one of three main suppliers of flu vaccine to the US, indicated that bulk lots of the vaccine were contaminated with bacteria that can cause urinary tract infections. FDA regulators revealed Friday it’s unlikely any of the vaccine will be cleared for use in the US. It’s also uncertain that Chiron will be able to provide vaccine for the 2005-2006 flu season. The process for developing flu vaccine takes months and time is needed to predict the type of vaccine needed for each upcoming flu season.

So what can you do to prevent getting the flu if you are shut out of a vaccination?

1. Rub it down - It’s obvious to wash your hands, but if you can’t find a sink or don’t have anti-bacterial lotion handy, rub your hands together hard for a minute or so to kill the germs.
2. Get heated up - take a steam or sauna. German researchers have found that those steaming twice a week got half as many colds and viruses as those who didn’t. Air hotter than 80 degrees is too hot for cold and flu viruses to survive.
3. Jump around - Aerobic exercise makes you breathe faster, heats up your body, and makes you sweat. The increased oxygen from your lungs to your blood and your increased body temperature helps natural virus-killing cells, especially when you bear down.
4. Clean it up - Drinking and smoking heavily whacks the immune system. Cilia, which sweep the nasal passages of cold and flu viruses, can be paralyzed by smoke. Drinking destroys the liver, which is your primary germ filter.
5. Yoplait it up - Some studies have shown eating a daily cup of yogurt can reduce your susceptibility to colds and disease by 25 percent.
6. Magic Mushrooms - try looking for Maitake Mushrooms. Indigenous to northeastern Japan, Maitake has been recognized for both flavor and medicinal reasons. Mushrooms have what are known as polysaccharides and a specific one, known as beta-glucan, is effective in activating white blood cells – making them fight off germs more quickly. White blood cells are what your body uses to attack microorganisms that try to get you sick.

If you can’t get a flu shot this year, with some luck and good prevention, you may just be able to get by without one.

The economic calendar will be busy at the end of this week, with all of the scheduled news releases squeezed into Thursday and Friday. The Retail Sales report on Friday carries the highest potential impact for the Bond market and home loan rates. The markets will be closed Monday in observance of Columbus Day.

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.