Industry News
Mortgage Industry News
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Jobless Claims Report
07/29/2010
Initial jobless claims printed in-line with expectations; continuing claims posted 65K higher than consensus. Equities are slightly higher in early trading; bonds are mixed. There is a $29B 7yr note auction today.Today's Market Color
07/28/2010
MBA mortgage applications were off 4.4% week-over-week; the Refi index was down 5.9%, while the Purchase index was up 2%. Durable Goods orders excluding aircraft was up 0.6%, after posting a 4.6% gain last month. There is a $37B 3yr note auction today and a $29B 7yr note auction tomorrow.Today's Market Color
07/27/2010
UBS and Deutsche posted better-than-expected earnings, sending equities higher in early trading; bonds are lower. There is a $38B 2yr note auction today, a $37B 3yr note auction tomorrow, and a $29B 7yr note auction on Thursday.New Home Sales Report Later Today
07/26/2010
New home sales are due out later this morning and are projected to print near record lows. Several economists have revised their 3-5 year global growth forecasts downward from around 4.75%-5% to the 3%-3.25% range, dragging equities futures lower in early trading, while bonds are mixed.Ford Posts Strong 2Q
07/23/2010
Ford posted a $2.6B 2Q profit, $0.68/share, beating the $0.41/share consensus; England's GDP grew at a faster clip than expected, 1.1% vs. 0.6%; German business confidence hit a 3-year high. Stocks are up this morning, bonds are lower.Today's Market Color
07/22/2010
Initial jobless claims printed higher than expectations; continuing claims were lower. Yesterday, Fed Chairman Bernanke said that even though the economy is "unusually uncertain" that the Fed will only take additional steps to reinvigorate the economy "if the recovery seems to be faltering". Stocks fell during his testimony, but are back up this morning on a few strong earnings reports.Refi Index Up 8.6%
07/21/2010
MBA Mortgage Applications jumped by 7.6% last week; the refi index was up 8.6%, while the purchase index was 3.4% higher. After JP Morgan and Goldman reported lower trading revenue than expected earlier in the week, Morgan Stanley announced stronger than consensus numbers. Wells Fargo also beat street estimates due to smaller loan losses.Bonds High in Early Trading
07/20/2010
Housing starts printed at a worse-than-expected -5.0%, with a downward revision to the previous month. Goldman and IBM posted earnings that were below consensus. Stock futures are lower, bonds are higher in early trading.First TIme On Record
07/19/2010
Earnings reports and rumors of four $1B+ takeovers have equities rallying in early trading. For the first time on record, central banks, mutual funds and US banks are buying more Treasuries at auction than Wall Street bond dealers, 57% this year compared to 45% one year ago.Goldman To Pay $550MM
07/16/2010
CPI printed in-line with expectations; Ex-food and energy was slightly higher than consensus. Goldman agreed with the SEC to pay a $550MM fine, saying the marketing material for the CDO at the center of the investigation contained "incomplete information"; the Senate approved the financial-overhaul bill which President Obama is likely to sign into law in the next week.Jobless Claims Mixed
07/15/2010
Lower-than-expected food and energy costs led to a PPI print below consensus; jobless data was mixed with initial claims stronger than expected while continuing claims remain elevated. JP Morgan announced stronger earnings than expectations; net income was $4.8B in the second quarter versus $2.72B one year ago.Purchase Index Down
07/14/2010
Despite the low-rate environment, MBA mortgage applications dropped 2.9%; the purchase index was down 3.1%, printing at its lowest level in 13 years. The Treasury is scheduled to auction $13B of 30yr bonds today.US Trade Deficit Widest in 17 Months
07/13/2010
The US trade deficit gapped to the widest level in 17 months due to higher than expected imports. The Treasury is scheduled to auction $21B in 10yr notes today and $13B of 30yr bonds tomorrow.Today's Market Color
07/12/2010
China's copper and iron ore exports dropped last month, signaling the global economy may be stagnating; Treasuries are higher, stocks and metals are lower. Later this week, CPI, PPI, and Retail Sales are scheduled for release.Cost of Insuring Bank Debt Falls
07/09/2010
European equities are up, again, this morning on optimism that the global recovery will continue; commodities are up; the cost of insuring bank debt fell to the lowest levels in eight weeks; US debt is also higher.IMF Raises Global Growth Estimate
07/08/2010
Initial and continuing jobless claims printed better than expected. The IMF raised their global growth estimate from 4.2% to 4.6%, yet warned that the financial market turmoil has added risks to the recovery. US Stock futures are up, bonds are lower.Refi Index Up 9.2%
07/07/2010
MBA Mortgage applications jumped by 6.7% last week; with the depressed rates, the Refi index was up 9.2%; Purchases were down 2%, printing at their second-lowest level since 1997. Stock futures are down on concern that earnings will disappoint for the past quarter; the 2yr note is near record lows in yield.European Equities Are Higher
07/06/2010
European equities are higher this morning with shares trading at their cheapest levels relative to earnings since 2009. REIT debt yield gapped in June relative to other bonds, showing that the potential economic slowdown has increased fears of more defaults.Today's Market Color
07/01/2010
Initial and continuing claims printed higher than expectations; consensus for tomorrow's Nonfarm Payrolls is -125K. Stock futures are lower on the news, bonds are close to unchanged.Refinances Jump 13%
06/30/2010
MBA mortgage applications were up 8.8% last week; purchases were down 3.3%, while refinancing jumped 13% with the lower rates. ADP printed at +13K, less than the 60K boost that was expected; consensus for Nonfarm Payrolls on Friday is -115K.US Bond Market Rises Again
06/29/2010
The US bond market is higher, again, this morning amidst Equities fears abroad, as well as concern that economic growth in China may be slowing.Personal Spending Increases
06/28/2010
Even though personal income showed a slight downtick in the economic releases this morning, personal spending posted an increase, showing that the consumer may be getting more confident about where the economy is heading. The G-20 agreed to pursue higher capital requirements for banks once economies start to recover fully.Overhall to Financial Regulations Bill
06/25/2010
GDP grew by 2.7% in the first quarter, less than previously reported. Lawmakers from the House and the Senate worked through the night to reconcile their two versions of the financial regulations bill, which will be the most sweeping overhaul since the Great Depression.Fed Statement on Economy
06/24/2010
Initial and continuing jobless claims printed in-line with expectations. Yesterday, the Fed said that "the economic recovery is proceeding and that the labor market is improving gradually...Housing starts remain at a depressed level...Bank lending has continued to contract in recent months". The Fed left rates unchanged.Existing Home Sales Dip
06/23/2010
Yesterday, Existing Home Sales printed much worse than expectations, down 6.0% month-over-month versus a consensus 2.2% increase; New Home Sales is scheduled for release later this morning. The Fed will announce their decision this afternoon and are expected to leave interest rates unchanged but the market will likely be more focused on the language that the Fed uses as to when they may raise rates.England To Tax Bank Balance Sheets
06/22/2010
UK Chancellor Osborne announced that England will start to tax bank balance sheets next year to generate an extra 2B pounds in revenue to help close the budget deficit. The Fed begins their two day meeting today; they are expected to leave rates unchanged but the market will likely be more focused on the language that the Fed uses as to when they may raise rates.Gold Hits Record High
06/21/2010
The People's Bank of China announced that they will end a 2 year peg on the dollar; oil, copper and equities are rallying, gold hit a new record high. China also increased holdings of US Treasury notes by 2.6% in March and April to $900B after 4 consecutive monthly declines.Gold Hits New High
06/18/2010
Gold hit a new high in early morning trading; gold looks to be heading for the 10th straight annual increase, the longest run since 1920. Moody's cut BP's credit rating 3 levels to A2. Stocks and bonds are slightly lower this morning.Jobless Claims Post Higher Than Expected
06/17/2010
CPI printed in-line with expectations; initial and continuing jobless claims posted worse than expectations. Spain was able to sell 3B euros of 10yr debt at a yield of 4.864%, less than the projected 5.04%, causing European stocks and bonds to rally. The euro is higher against other currencies.Mortgage Applications Surge 17.7%
06/16/2010
MBA mortgage applications were up 17.7% last week. With the price surge in mortgages, the refi index was up 21%, reaching the highest level in a year. Housing starts and building permits printed much worse than expectations. Stock futures are down in early trading due to a lower-than-expected earnings forecast from FedEx; bonds are up.Empire Manufacturing Increases
06/15/2010
Import prices printed slightly higher than expectations, with upward revisions to the previous month; Empire Manufacturing posted a month-over-month increase. Moody's cut Greece's credit rating down 4 grades; the Greek/German 10yr yield spread widened to 605bps. The Compass Mandatory/Best Efforts Spread widened 9bps to 45bps.Today's Market Color
06/14/2010
The European Union reported that industrial production increased 0.8% in April, more than economic forecasts. Stocks and commodities are up, bonds are lower. PPI, CPI, and housing starts data is due out later this week.Retail Sales Unexpectedly Drop
06/11/2010
Retail sales unexpectedly dropped in May as consumers boosted savings amidst slowing employment and a declining stock market. Stocks are lower, bonds are higher in early trading. In credit markets, the yield spread between European corporate debt and US corporate debt is the widest on record, signaling that investors are not confident that European lawmakers can tame their financial crisis.Jobless Claims Continue to Drop
06/10/2010
Both initial and continuing jobless claims dropped week-over-week; the trade deficit printed at the widest level in a year. Stocks and commodities are higher, bonds are lower in early trading. The Treasury is scheduled to auction off $13B in 30yr bonds today.China Exports Higher Than Expected
06/09/2010
China's exports printed much better than expectations, sending stocks higher. Despite lower rates, mortgage applications were off 12.2% last week. The Treasury is scheduled to auction off $21B in 10yr notes today.Fed to Raise Interest Rates
06/08/2010
In an interview last night, Fed Chairman Bernanke said that the Fed will raise interest rates before there is "full employment", however, officials do not know when that will start. He did say that the unemployment rate will likely stay "high for a while". Bonds are weaker, stocks and commodities are up.German Exports Jump
06/07/2010
German exports unexpectedly jumped, partly due to the weakening euro, causing stock futures to recover some of Friday's losses. With the rally in mortgages on Friday, the Compass Conventional 30 Average Gross Profit Margin posted a 9bp increase.Unemployment Drops Slightly
06/04/2010
Nonfarm Payrolls printed at a worse-than-expected +431K; the unemployment rate dropped from 9.8% to 9.7%; U6, which includes workers who have left the work force and formerly full-time employees now working part-time jobs, fell from 17.1% to 16.6%. Overnight, it was reported that Hungary may default on its debt. Bonds are higher; stocks and commodities are lower.European Debt Crisis Fears Subsiding
06/03/2010
DP printed below expectations, +55K; consensus for Nonfarm Payrolls tomorrow is +515K. For the time being, fears over the European debt crisis have subsided and equities are continuing their strong rally from yesterday; bonds are down.Oil Stocks Drop
06/02/2010
Japanese Prime Minister Hatoyama said that he will step down 2 months before elections; the yen is down against the dollar and euro. Oil stocks are lower on concern that the BP oil spill will lead to stricter regulations on drilling in the Gulf of Mexico. ADP (consensus is +70K) is scheduled for release tomorrow; Nonfarm payrolls (projected at +515K) is set for release on Friday.BP Abandons Latest Attempt to Stop Oil Leak
06/01/2010
BP has abandoned its latest attempt to stop the Gulf of Mexico leak; the stock is down 17% in London trading and bonds are in line with those of companies rated as much as 5 levels below them; the spill has already cost around $1B. Commodities and stocks are lower; Treasuries and mortgages are up.Bonds Rebounding
05/28/2010
Bonds are rebounding slightly this morning following yesterday's sell off. Personal spending printed well below expectations.Jobless Claims Mixed
05/27/2010
Jobless claims were mixed, with initial printing slightly higher than expectations and continuing slightly lower. Both remain elevated. According to Citigroup, Greece's struggle to repair its budget crisis may signal to other countries that it is easier to default on bond obligations than to cut spending, creating "massive" risk to those bondholders.Durable Goods Orders Increase
05/26/2010
Durable goods orders increased more than expected due to rising exports and thin inventories; stocks and commodities are higher, bonds are down. Italy announced $30B in spending cuts, helping push European equities up.Stocks and Commodities Down
05/25/2010
Stocks and commodities are down after the IMF urged Spain to do more to overhaul its struggling banks; the euro is at a 9-year low against the yen and is down about 1.4% against the dollar; bonds are up. 3-month LIBOR is higher for the 11th day in a row.3-Month Libor Nearly Doubles
05/24/2010
There are more fears this morning surrounding the European debt crisis; the euro is off 1.5% against the dollar; stock futures and oil are down, bonds are up. 3-month LIBOR has almost doubled in the last 3 months.Senate Passes Regulation of Financial Industry
05/21/2010
The Senate passed the most sweeping, comprehensive regulation of the financial industry since the Great Depression; after reconciliation with the House bill, curbs will likely be put on proprietary trading and restraints will be imposed on derivative trading. The passage of this bill, coupled with more fears from the European debt crisis, has equities moving lower and bonds higher.European Debt Crisis Effects Stocks
05/20/2010
Initial and continuing claims printed higher than expectations. Stocks are pointing down for the sixth consecutive day as concerns still are centered around the European debt crisis; German parliament is scheduled to vote tomorrow on the country's share of the $1T bailout package.Today's Market Color
05/19/2010
To try and curb the downward pressure on stocks, Germany has banned naked short-selling in equities, government bonds and credit default swaps. Regardless, stock futures and commodities are down.Housing Starts Post Stronger Than Expected
05/18/2010
Headline PPI printed softer than expectations due to deflated food and energy prices; housing starts posted a better than consensus month-over-month increase. Stock futures and commodities are up.Today's Market Color
05/17/2010
Empire manufacturing grew much less than expectations. The debt crisis in Europe continues to weigh on the markets; the euro is lower, equities are down, bonds are up.Retail Sales - 7th Consecutive Increase
05/14/2010
Retail sales printed slightly stronger than expectations, posting the 7th consecutive increase. Speculation is growing that the European Union will ultimately have to split up; gold continues to set record highs, US debt is also up.Initial Jobless Claims - Forth Straight Drop
05/13/2010
Initial jobless claims posted a 4th straight drop; continuing claims remain elevated, printing higher than expectations. According to RealtyTrac, there were a record 92,432 bank repossessions in April, up 45% from a year ago; there were 333,837 foreclosure filings. The Treasury will auction $16B in 30yr bonds today.Trade Deficit Grows
05/12/2010
The trade deficit grew to the highest level in a year due to higher oil prices. GDP for the 16 euro nations grew at a rate of 0.2%, faster than expectations; equities are up. The Treasury will auction $24B in 10yr notes today and $16B in 30yr bonds tomorrow.China Inflation at 18 Month High
05/11/2010
The euro gave back all its gains from yesterday in early trading on concerns that the near $1T bailout package will hinder growth going forward. Inflation in China accelerated to an 18-month high, increasing chances that the government will have to raise interest rates. The Treasury will auction $38B in 3yr notes today, $24B in 10yr notes tomorrow, and $16B in 30yr bonds on Thursday.16 Euro Nations Provide Help
05/10/2010
The 16 euro nations agreed to offer as much as 750B euros ($962B), including IMF backing, to countries facing instability; the ECB will buy government and private debt; debt from Greece, Spain, Italy, Ireland, Portugal, as well as others, has rallied. Stocks and commodities are sharply higher, bonds are lower. The Treasury will auction $38B in 3yr notes tomorrow, $24B in 10yr notes on Wednesday, and $16B in 30yr bonds on Thursday.Mis-entered Trade Causes DOW Sell-off
05/07/2010
Nonfarm payrolls printed much higher than expectations, +290K vs. +190K consensus; the unemployment rate jumped up .2% to 9.9%; U6 is up to 17.1%. The SEC will conduct an investigation as to what happened yesterday with a supposed mis-entered trade and the subsequent almost 1,000 point DOW sell-off and immediate 650 point rally from the low.Jobless Claims Fall 3rd Straight Week
05/06/2010
Initial jobless claims fell for the 3rd straight week, continuing claims also dropped; consensus for Nonfarm Payrolls tomorrow is +190K. The ECB left rates at 1%.ADP Prints Inline with Expectations
05/05/2010
ADP printed inline with expectations, +32K, with a sizable upward revision to the previous month; consensus for Nonfarm Payrolls on Friday is +189K. ECB council member Weber said the financial crisis in Greece is threatening "grave contagion effects" for the euro area; Germany's parliament still must approve their share, 22.4B euros, of the 110B aid package despite public opposition.Euro Grows Weaker
05/04/2010
The euro is weaker this morning on concern that the bailout of Greece won't stem Europe's debt crisis; debt from Spain, Ireland and Italy is wider and the Spanish stock market is off about 3%. US stocks are down due to a slowdown in Chinese manufacturing, bonds are up.Personal Income and Spending Up
05/03/2010
Personal Income and Spending were both up and in-line with expectations. Finance ministers approved a 110B euro bailout for Greece; they refused, however, to answer questions about how other struggling nations in the 16-nation bloc would be treated, calling Greece a "special case"; Portuguese debt gapped relative to German debt to the widest levels since 1997. China required banks to increase reserves for the 3rd time this year, pushing equities lower.First Quarter GDP Grows
04/30/2010
First quarter GDP grew at a rate of 3.2%, due to increased consumer spending. Greek bonds are up on speculation that an EU-led bailout amounting to 120B euros will be finalized soon.Better Than Expected Profits
04/29/2010
Both initial and continuing claims fell week-over-week. About 3/4 of the companies announcing earnings in Europe and the US posted better than expected profits, pushing stock indexes higher. The Compass Mandatory/Best Efforts Spread jumped 8bps to 47bps. The Treasury will auction $32B in 7yr notes today.Rally of Mortgages Raises Gross Profit Margin
04/28/2010
Yesterday, Greek debt was downgraded to junk by S&P; they project that investors would only recover 30-50% of their investment should the nation fail to make debt payments; yields on Greek 2yr notes are over 25% from 4.6% a month ago. With the rally in mortgages yesterday, the Compass 30-year Average Gross Profit Margin showed an 8bp jump. The Treasury will auction $42B in 5yr notes today and $32B in 7yr notes tomorrow.Ford Posts First Quarter Profit
04/27/2010
Ford posted a $2.1B 1Q profit; Deutsche reported first quarter earnings of 1.76B euros, up 48% from a year ago, due to investment banking revenue. Credit default swaps on European sovereign debt continued to hit new highs on concern that Greece's fiscal crisis is starting to hurt the borrowing ability of other indebted nations. The Treasury will auction $44B in 2yr notes today, $42B in 5yr notes on tomorrow, and $32B in 7yr notes on Thursday.Credit Default Swaps Pushed Higher
04/26/2010
More concerns about the debt situation in Greece have pushed credit default swaps higher, as well as CDS on Portugal, Spain and Ireland. The euro is weaker; US bonds and equities are up. The Treasury will auction $11B in 5yr TIPs today, $44B in 2yr notes tomorrow, $42B in 5yr notes on Wednesday, and $32B in 7yr notes on Thursday.Durable Goods - Biggest Jump Since 2007
04/23/2010
Durable goods excluding transportation printed much higher than expected, the biggest jump since 2007. With borrowing costs ballooning, Greece asked for the activation of its 45b euro lifeline from the EU and IMF.Greek Bond Yields Spike
04/22/2010
PPI printed slightly higher than expectations; continuing jobless claims remain elevated. Greek bond yields spiked to the highest level since 1998 (10yr at 8.56%) due to a worsening budget deficit outlook; voters feel that budget cuts have gone too far, investors want Greece to take further action.Mortgage Applications Jump
04/21/2010
Morgan Stanley's posted 1Q earnings of $1.78B, compared to a loss of $177M one year ago; fixed-income trading revenue doubled from a year ago. MBA mortgage applications jumped 13.6%.Today's Market Color
04/20/2010
Goldman's 1Q net income almost doubled to $3.46B, $5.59/share, due to record fixed income trading revenue. There are several other companies scheduled to release earnings today. Stock futures and commodities are up; bonds are slightly lower.Citigroup Posts Positive Earnings
04/19/2010
Citigroup announced 1Q earnings of $4.43B after posting a loss of $7.58B in the 4th quarter; the gain was mostly due to bad loan costs declining. After the SEC filed a lawsuit against Goldman on Friday, UK Prime Minister Gordon Brown asked the Financial Services Authority to start a probe, saying he was "shocked" at the "moral bankruptcy".Housing Permits Stronger Than Expected
04/16/2010
Housing starts and building permits both printed stronger than expectations, with upward revisions to the previous month. Bank of America announced their first profit in three quarters, $3.18B, or $0.28/share. Yesterday, San Francisco Fed President Yellen said inflation is "subdued", giving treasuries a boost.Jobless Claims Jump
04/15/2010
Initial and continuing claims both jumped week-over-week; Empire Manufacturing printed much stronger than expectations. China's GDP grew at 11.9% in the first quarter, which may lead to China un-pegging the yuan to the dollar.Retail Sales Print Stronger Than Expected
04/14/2010
Retail sales printed slightly stronger than expectations; CPI was in line with consensus. JP Morgan's 1Q earnings jumped 55% to $3.33B due to record fixed-income trading revenue and a reduction in provisions for credit losses.Domestic Demand Growing
04/13/2010
The trade deficit gapped by more than anticipated due to climbing imports, a sign that domestic demand is growing and the economy may be turning; import prices increased less than expected. There was strong demand for 26-week Greek Treasury bills after the EU and IMF promised up to 45B euros in loans.Euro Rallies with News of Greece Bailout
04/12/2010
Greece was promised as much as 45B euros in loans from the EU and the IMF yesterday; the euro rallied, credit default swaps on Greek bonds fell. According to CreditSights Inc., Bank of America, JP Morgan and Wells Fargo may have to set aside $30B to cover possible losses on home-equity loans.Treasuries Slightly Lower
04/09/2010
Treasuries are slightly lower this morning on speculation that Greece will get bailed out by the European Union; Greek 2yr spreads have tightened by 19bps against German 2yrs. With production up over the last few days, Compass's Gross Profit Margin showed a 17bp jump to 71bps.Jobless Claims Data Mixed
04/08/2010
Jobless claims data was mixed: initial claims printed 25K worse than expectations, continuing claims posted a sizable week-over-week drop. The speculation continues to grow that the Greece bailout will unravel; Greek's 10yr spread against German bunds widened to 436bps. Yesterday's 10yr note auction was strong; the Treasury will auction $13B in 30yr bonds today.Mortgage Applications Off 11%
04/07/2010
MBA Mortgage applications were off 11% in the holiday-shortened week. Seeking a lower yield, Greece is looking to offer dollar-denominated debt. Yesterday's 3yr note auction was strong; the Treasury will auction $21B in 10yr notes today.Greece - IMF Bailout
04/06/2010
In a change of events, Greece "isn't keen on the IMF being involved in any bailout". This news spooked investors and Greek bonds are down sharply; the euro is down against 14 other currencies. This news has also caused a flight to quality with US fixed income up. The Treasury will auction $40B in 3yr notes today.Oil Above $85 A Barrel
04/05/2010
With the equity market being closed on Friday, and the overall positive NFP print, stock futures are up this morning; oil is above $85/barrel. The Treasury will auction the following this week: $8B in 10yr TIPS, $40B in 3yr notes, $21B in 10yr notes, and $13B in 30yr bonds.Nonfarm Payrolls Increase Most In 3 Years
04/02/2010
Nonfarm payrolls increased by 162K in March, the most in 3 years. This number includes 48K census workers; the unemployment rate remained at 9.7%. Yesterday, the Treasury announced their auctions for next week: $8B in 10yr TIPS, $40B in 3yr notes, $21B in 10yr notes, and $13B in 30yr bonds.Mortgage Rates Rise
04/01/2010
Mortgage rates are higher this morning on the first day with no Fed purchasing. Stock futures are up on news that manufacturing increased in China, Japan and the UK. After yesterday's weak ADP print, tomorrow's consensus for Nonfarm Payrolls is +182K.Last Day of MBS Purchase Program
03/31/2010
ADP printed worse than expectations, -23K; consensus for Nonfarm Payrolls on Friday is +185K. Today is the last day of the Fed's $1.25T MBS purchase program. With the uptick in production the last few days, the Compass C30 Avg Gross Profit Margin increased by 6bps yesterday.Fed To End MBS Purchase Program Tomorrow
03/30/2010
The Fed is scheduled to end the $1.25T MBS purchase program tomorrow. Fannie and Freddie predict that the effect will not be major: a rise of about 25bps in mortgage rates over the next 3 months, or around $30/month more on a $250,000 mortgage. ADP is scheduled for tomorrow, projected at +40K; Nonfarm payrolls is set for release on Friday, consensus is +184K.Greece to Sell 7 Year Notes
03/29/2010
Personal income and spending printed close to expectations. Greece plans to sell 7yr notes, its first debt offering since the EU agreed to help the nation finance its debt. The Fed is scheduled to end the $1.25T MBS purchase program on Wednesday; Nonfarm payrolls is set for release on Friday (consensus is +190K).Market is Rallying
03/26/2010
Market is rallying following today's GDP release which showed that the economy expanded at an annual rate of 5.6%, less than the 5.9% expected by most analysts.Today's Market Color
03/25/2010
Market is quiet this morning following yesterday's sell off with Initial Claims printing slightly lower than anticipated.Durable Goods Orders Rise
03/24/2010
Durable Goods Orders rose again in February, marking 3 months of increases and assuring investors that the rebound in manufacturing will continue to drive the economic recovery.Today's Market Color
03/23/2010
There is a summit for European leaders this week to discuss what will be done in regards to the Greek bail-out. At this point, no decision has been made. The euro has declined 10% against the dollar in the last 4 months. 2yr Treasury yields are the highest since January before today's $44B auction.House Passes Health-care Legislation
03/22/2010
The House passed the health-care legislation yesterday by a vote of 219-212. 32 million uninsured will receive benefits once President Obama signs the bill into law. Nancy Pelosi expects the bill to save Americans $1.3T. According to the bond market, it is becoming increasingly more likely that the US will lose its AAA rating as there are several corporations who are able to borrow at sub-Treasury yields, indicating that Treasuries are considered more risky.Today's Market Color
03/19/2010
The EU still appears to be split on bailing out Greece. With 20B euros in debt maturing over the next 2 months, if Greece can't get assistance they will most likely have to turn to the IMF. There are several economists predicting that the Fed will raise the discount rate before the next meeting on April 28th.Today's Market Color
03/18/2010
CPI printed slightly softer than expectations; continuing jobless claims posted a week-over-week increase. A $17B job creation bill is expected to be signed by President Obama in the next few days. Greece gave the EU one week to finalize a bail-out or they will go to the IMF for help.MBS Purchase Program to Cease
03/17/2010
Core PPI printed in line with expectations; CPI is scheduled for release tomorrow. Yesterday, the Fed re-iterated that the $1.25T MBS purchase program will cease at the end of March.Today's Market Color
03/16/2010
Import Prices printed slightly lower than expectations; housing starts and building permits posted higher numbers than consensus. European finance ministers put together the structure for a lifeline for Greece. This line will be used if the planned tax increases and wage cuts do not work. The FOMC decision is scheduled for 2:15 this afternoon.Today's Market Color
03/15/2010
With inflation hitting 16-month highs in both China and India, both countries are taking steps to cool their respective economies. Stocks and commodities are off; bonds are close to unchanged.Last Month’s Drop in Sales and Increase in Listings is not the Real Story
03/15/2010
Pending sales increased 33% in the four-county area during the month of February, despite a 4% increase in over-all inventory, a 6% drop in total sales and a 1.5% drop in prices in the same month. This dramatic rise in Pended Sales is being driven by Short-Sales representing 45% of the market.Retail Sales Post Strong Gains
03/12/2010
Despite bad weather in February, Retail sales posted strong gains. Bonds are down; stocks and commodities are up. Yesterday, the Fed announced that they purchased another $10B in mortgage-backed securities in the last week, bringing the total to $1.225T. With the program scheduled to cease at the end of the month, that leaves the Fed with a little under 3 weeks to purchase an additional $25B.Today's Market Color
03/11/2010
Jobless claims data was mixed this morning, with continuing claims remaining elevated while initial claims were in line with expectations. Ahead of today's $13B 30yr Treasury auction, the 2-30 spread is at 378bps, close to the all-time high.Mortgage Applications Gain Slightly
03/10/2010
Market is quiet this morning with another light day on the data front. Mortgage applications gained slightly last week.Today's Market Color
03/09/2010
Bonds are rallying on a light day for economic data as stocks are setting up to trade lower following a slew of missed earnings. Right now, the futures market is pricing in a 91% chance that the Fed keeps rates somewhere between 0% and .25% through June 23rd, 2010.Today's Market Color
03/08/2010
Both Greece and Dubai look to be closer to resolving, at least temporarily, their deficit issues. French president Sarkozy said that the euro region is ready to help out if Greece struggles in funding its deficit; Dubai World will present a plan to renegotiate $26B in debt this month. Stocks and commodities are up; bonds are off.Unemployment Rate Falls
03/05/2010
Nonfarm payrolls printed better than expectations, -36K vs. -68K consensus. The unemployment rate fell to 9.7%. The U6, which includes part-time workers who can't find full-time employment and people who have stopped looking for a job, climbed from 16.5% to 16.8%.Jobless Claims Drop
03/04/2010
Both initial and continuing jobless claims posted week-over-week drops; consensus for Nonfarm payrolls tomorrow is -65K. Greece began selling 5B euros of 10yr debt today after promising to reduce Europe's largest budget deficit, which included wage cuts that has prompted more protests.Mortgage Applications Jump
03/03/2010
ADP printed in-line with expectations with a sizable downward revision to January; MBA mortgage applications jumped by 14.6%. Greek bonds are rallying after Greece announced a 4.8B euro budget cut. Consensus for Nonfarm payrolls on Friday is -58K.Today's Market Color
03/02/2010
The market is sitting lower in very quiet trade while the 10-yr trips around the 3.625% area while the curve gets twisted steeper.Personal Income Growth
03/01/2010
Personal income grew at a slower pace in January; personal spending accelerated. HSBC missed full-year net income estimates due to the costs of bad loans on their balance sheet.Today's Market Color
02/26/2010
GDP for the 4th quarter was revised up from 5.7% to 5.9%. Treasuries are holding their elevated levels on the continued threat that Greece will default on its debt.Today's Market Color
02/25/2010
Initial and continuing jobless claims printed worse than expectations; durable goods orders printed better than consensus due to airplane purchases. Bonds are up; equity futures and commodities are down. There is a $32B 7yr note auction today.Mortgage Applications Drop
02/24/2010
Bonds are trading lower this morning ahead of today's Treasury Auction of $42B 5yr notes. The Mortgage Banker's Association reported that mortgage applications dropped 8.5% to the lowest level since 1997.Today's Market Color
02/23/2010
After Lowe's posted better-than-expected earnings yesterday, Home Depot beat 4Q expectations and raised the dividend for the first time since 2006. The Treasury is auctioning off $44B in 2yr notes today, $42B in 5yr notes tomorrow, and $32B in 7yr notes on Thursday.Today's Market Color
02/22/2010
Lowe's, the second largest home-improvement retailer, announced 4Q earnings that beat expectations. There is still no resolution on the Greece bailout. The Treasury has $126B to auction this week: $8B in 30yr TIPS today, $44B in 2yr notes tomorrow, $42B in 5yr notes on Wednesday, and $32B in 7yr notes on Thursday.Fed Raises Discount Rate
02/19/2010
The Fed unexpectedly raised the Discount Rate by 25bps yesterday afternoon to 0.75%. After PPI printed higher than expectations yesterday, CPI this morning showed less inflation than consensus estimates. The Treasury announced the auctions for next week: $8B in 30yr TIPS, $44B in 2yr notes, $42B in 5yr notes, and $32B in 7yr notes.30% Gain in REO Inventories Slows January Sales
02/19/2010
TRENDGRAPHIX’s latest report shows that closed sales decreased 31 percent during the month of January for the Tri-County region of Sacramento, Placer and El Dorado Counties; while REO inventory increased by 30%.Producer Prices Print Higher
02/18/2010
Producer prices printed higher than expectations; initial and continuing claims were worse than consensus. The combination of the two numbers has pushed equity futures down and bonds slightly up. In yesterday's FOMC minutes, the Fed discussed starting sales of assets in the "near future", which sent treasuries sharply lower.Today's Market Color
02/17/2010
Mortgage applications were off 2.1% overall last week with rates little changed - purchases were off 4.0% while refinances fell 1.2%.US Retail Sales Jump
02/16/2010
US Retail Sales jumped more than expected, the third gain in four months. China increased reserve requirements for the second time in a month as loan growth continued to accelerate. After Fannie and Freddie announced that they will be buying delinquent loans, spreads between FN and FG MBS and the 10yr treasury bond are the tightest levels in 17 years.Today's Market Color
02/16/2010
According to Greece Finance Minister George Papaconstantinou, "there's no actual need" for a bailout and Greece is ahead of its own deficit-reducing targets. European finance ministers will review the progress on March 16th. Empire Manufacturing increased more than expected.Jobless Claims Drop Sharply
02/11/2010
Initial and continuing jobless claims dropped sharply week-over-week. Euro-region leaders demanded that Greece get the bloc's highest budget deficit under control and said they are prepared to take "determined" action to stem the currency's worst crisis in its 11 year history. There is a $16B 30yr bond auction today.Today's Marketing Color
02/10/2010
The Greece bailout has still not been resolved. Currently, Germany is the front-runner to help Greece roll their debt forward with some sort of debt guaranty. There is a $25B 10yr note auction today. Stock futures and commodities are down; bonds are up.Stocks Are Up
02/09/2010
UBS announced 4th quarter net income of 1.21B francs, the first profitable quarter since 3Q of 2008, even as wealthy clients continued to withdraw funds at an accelerated rate. There is a $40B 3yr note auction today. Stock futures and commodities are up; bonds are down.Today's Market Color
02/08/2010
Treasuries continue to catch a bid in a flight to quality on concern over the deficits in Greece, Portugal and Spain. The Treasury will auction $81B in notes and bonds this week.Unemployment Rate Drops
02/05/2010
Nonfarm payrolls printed worse than expectations at -20K; the unemployment rate dropped to 9.7%; U6 (includes people who are no longer looking for work and part-time workers who cannot find full-time employment) dropped from 17.3% to 16.5%. Stocks and bonds are mixed.Today's Market Color
02/04/2010
Bonds are trading higher this morning on concerns over budget deficits in Europe. Initial Jobless claims unexpectedly jumped to 480K, versus the 455K expected by most analysts, adding fuel to the rally.MBA Applications At Six Week High
02/03/2010
ADP printed at a less-than-expected -22K, the smallest drop in two years. With government hires in January, NFP is forecasted to show positive job growth of 13K. MBA mortgage applications came in at the highest level in six weeks due to refinancings with the lower rates.Today's Market Color
02/02/2010
The Australian central bank unexpectedly left rates unchanged at 3.75%, causing equities and commodities to rally. There is a good amount of labor data due out later this week: ADP is projected to print at -30K tomorrow; Initial and continuing claims on Thursday; and consensus for Nonfarm Payrolls is at a positive 5K on Friday.Consumer Spending Increases
02/01/2010
Consumer spending increased for the third straight month, although less than expected, in another sign that the economy may be turning; personal income jumped by 0.4%. President Obama announced his $3.8T budget for 2011, which would give an estimated $1.6T deficit; the budget includes $800B in higher taxes and fees on those earning more than $250,000, banks that benefited from the financial industry bailout and the oil, gas and coal industries. Treasuries are down on the announcement.Ben Bernanke Wins Second Term
01/29/2010
4th quarter GDP printed much higher than expectations, 5.7%-the fastest pace in six years, due largely to inventory build-ups. Bonds are down; stocks and commodities are rallying. Ben Bernanke officially won his Senate approval for a second term as Fed chairman yesterday.Today's Market Color
01/28/2010
Yesterday, the Fed expectedly left rates unchanged, but remained firm that they will end the $1.25T MBS purchase program at the end of March, which pushed yields higher. This morning, initial jobless claims posted a week-over-week drop; durable goods orders jumped more than forecast. There is a $32B 7yr note auction today.Today's Market Color
01/27/2010
Despite lower rates, MBA mortgage applications dropped 10.9% last week. The FOMC decision is due out at 2:15 this afternoon and there is speculation that the Fed may hold firm to the March ending of the $1.25T mortgage-backed securities purchase program. There is a $42B 5yr note auction today.Credit Tightens in China
01/26/2010
Credit continues to tighten in China as The Bank of China has stopped extending new corporate loans in the Shanghai area. They will also screen personal loans and mortgages more closely. Stocks and commodities are down; bonds are rallying slightly. There is a $44B 2yr note auction today.Bank-Owned Inventories on the Rise
01/26/2010
After a full year of numerous government moratoriums on foreclosures, we ended 2009 seeing a 22% increase in the number of foreclosed homes entering the market in December; and we expect at least a 15% increase in foreclosed homes on the market in 2010.Stock Futures Rise
01/25/2010
Bonds are trading lower this morning with Existing Home Sales data scheduled for release at 10:00 EST. Stock Futures are higher following last week's sell off, adding to pressure on Treasuries.Today's Market Color
01/22/2010
Bonds are trading slightly lower with no economic data scheduled for release today.Today's Market Color
01/21/2010
Bonds are trading lower despite this morning's report that showed initial jobless claims rose by 36,000 to 482,000, a larger increase than most analysts expected. Continuing claims came in right in line with analysts expectations at 4.6M.Wholesale Prices Unchanged
01/20/2010
Bonds are rallying following this morning's core PPI release that showed wholesale prices were unchanged in December, versus the 0.1% increase expected by most analysts.Kraft to Purchase Cadbury
01/19/2010
Bonds are trading lower this morning on a relatively light day for economic data. Citigroup posted a 4th quarter loss of $7.6B after booking an $8B pretax charge for repaying $20B in bailout funds, and after four months of negotiations, Kraft agreed to purchase English chocolate maker Cadbury for $19.7B.Today's Market Color
01/15/2010
Bonds are trading higher following this morning's CPI release which showed that consumer prices increased 0.1% in December, less than the consensus estimate of 0.2%.Today's Market Color
01/14/2010
Bonds are rallying this morning following weaker than expected retail sales data. Initial claims came in near expectations. Right now, the futures market is pricing in aPurchase Applications Jump
01/13/2010
Bonds are trading lower this morning on a relatively light day for economic data. MBA Purchase Applications jumped from 0.5% to 14.3% week over week and the Fed's Beige book is scheduled for release at 2:00 EST.Recoup Losses From Tarp Program
01/12/2010
China ordered banks to set aside more in reserves to curb any kind of asset bubble that may be forming; stocks are down, bonds are rallying. President Obama plans to raise as much as $120B by imposing a fee on financial institutions to help recoup the losses from the TARP program. Details of the fee are not known yet, but it may include one or a combination of an income surtax, an excise tax or a fee pegged to the value of assets.Stocks and Commodities Pushed Up
01/11/2010
China's imports rose to a record, pushing stocks and commodities up. China has surpassed the US as the world's largest automaker, with sales jumping 46% in 2009. There are no scheduled data releases today.Today's Market Color
01/08/2010
Nonfarm Payrolls printed at a worse than expected -85K; last month's number was revised up to a positive 4K; the unemployment rate remained constant at 10%. Stock futures are down; bonds are rallying.Retailer Earnings Strong
01/07/2010
Continuing claims dropped significantly week-over-week from 4.98MM to 4.8MM; consensus for tomorrow's Nonfarm Payrolls is no change. Earnings at Sears and a few other retailers were stronger than expectations. In yesterday's release of the Fed minutes, officials said that more stimulus "might become desirable at some point".Mortgage Applications Up
01/06/2010
ADP printed slightly worse than expectations, but was much stronger than last month's number; ADP has overshot the Labor Department's estimate for job losses by an average of 85K over the last 6 months. Consensus for Friday's Nonfarm Payrolls is no change. Mortgage applications were up slightly week over week, 0.5%.US Manufacturing Strong
01/05/2010
Yesterday, US manufacturing showed the strongest expansion in over three years; factory orders are due out later this morning. After selling off in December (10yr rate jumped 64bps), the 10yr note has caught a bid in the first few trading days of the month on speculation that the Fed will leave rates low for an extended period of time.Today's Market Color
01/04/2010
China's manufacturing grew at the fastest pace in more than five years; US manufacturing numbers are due out later this morning. Stock futures and commodities are up.Jobless Claims Strong
12/31/2009
Initial and continuing jobless claims printed much stronger than expectations, the lowest levels since July 2008. Stock futures and commodities are up; bonds are down.Today's Marketing Color
12/30/2009
Stocks, commodities and US equity futures are down in early trading; bonds are up. After the average 2yr and 5yr note auctions the last two days, the Treasury will auction $32B in 7yr notes today.Stocks Rallying
12/29/2009
Commodities and stocks are rallying on sentiment that the economic expansion will continue into 2010. After a mediocre 2yr note auction yesterday, the Treasury will auction $42B in 5yr notes today with yields at their highest point since August.US Stock Futures Are Up
12/28/2009
China's economy grew faster than previously announced, which has pushed global equities and US stock futures up; bonds are down. The Treasury will be auctioning $118B in debt this week, starting with $44B of 2yr notes today.Spending Increases Through 2010?
12/24/2009
Durable Goods Orders printed higher than expectations, showing that spending and production increases will likely sustain into 2010. The $871B Health Care Bill passed its last Senate Vote, 60-39. Now the Senate bill will have to be reconciled with the House version.Spending Increases Sixth Time
12/23/2009
Personal spending increased for the sixth time in seven months due to holiday discounts; personal income increased by the largest percentage since May. Stock futures and commodities are up off of this data; the Ten Year Yield is near a four-month high ahead of next week's auction supply announcement.Today's Market Color
12/22/2009
In the final reading for 3Q GDP, the US economy posted a 2.2% gain, less than previously reported. Greece's credit rating was downgraded only one level by Moody's, causing the debt to rally as a steeper dowgrade was expected; European equities and US stock futures are up.Health-Care Bill Passes Crucial Vote
12/21/2009
The US Senate passed a crucial test vote for the new Health-Care Bill, as all 60 Democrats voted to curtail debate from Republicans on the $871B measure, and aim to pass the legislation before Christmas. Stocks and commodities are up this morning as investors remain confident that the economic recovery will keep accelerating; bonds are down.Stocks Rally
12/18/2009
German business confidence printed at a 17-month high, causing European equities and US stock futures to rally; bonds are lower. PIMCO's Bill Gross has cut government debt holdings and increased cash his cash position to the most in a year, signaling that PIMCO may see rates on the long end of the curve starting to rise.Today's Marketing Color
12/17/2009
Initial and Continuing jobless claims printed slightly worse than expectations; teasuries are rallying and stock futures are pointing down. In order to pay back government funds, Citi raised $17B by selling 5.4B shares at $3.15/share, $0.10 below where the US government bought their stake.Building Permits Highest In Year
12/16/2009
CPI printed in line with expectations; ex-food and energy posted no change month-over-month, showing that inflation is still in check with the Fed scheduled to announce their rate decision at 2:15 this afternoon.Today's Marketing Color
12/15/2009
Bonds are trading lower this morning as PPI printed 1.8% vs. a concensus estimate of 0.8%. Core PPI also came in stronger than expected at 0.5% vs a concensus of 0.2%. Right now, the futures market is pricing in a 91.6% chance that the Fed keeps rates somewhere betweenToday's Marketing Color
12/14/2009
Bonds are relatively unchanged this morning with no economic data scheduled for release today. Over the weekend, Abu Dhabi announced that they would provide $10B to troubled neighbor Dubai, and this morning CitiGroup announced that they have struck a deal with regulatorsREO Market Steps Down as Sales Leader
12/12/2009
A shift in the market has occurred in the Sacramento region, putting traditional sales (non-distressed properties) in the lead for units sold over REO and short-sale properties. Out of the 1,995 total sales in the 4 county region in NovemberRetail Sales Strong
12/11/2009
Bonds are trading lower this morning as Retail Sales came in stronger than expected at 1.3% vs a consensus estimate of 0.6%. Right now, the futures market is pricing in an 93.5% chance that the Fed keeps rates somewhere between 0% and .25% through March 16th, 2010.Jobless Claims Below 500K
12/10/2009
Initial Jobless Claims again printed below the 500K level. The less volatile 4-week rolling average is at a one-year low, 473,750. French President Nicolas Sarkozy is considering a one-time tax on banker bonuses over 27K euros for 2009; the rate has not yet been determined.Today's Marketing Color
12/09/2009
Bonds are down slightly this morning on a light day for economic data. Treasury Secretary Geithner is said to be seeking a $700 Billion TARP extension through October 2010. Right now, the futures market is pricing in an 92.7% chance that the Fed keeps rates somewhereDollar Continues To Strengthen
12/08/2009
Treasuries and the dollar continued to show strength, while stocks, gold and oil fell on continued concern of government deficits. Right now, the futures market is pricing in a 93% chance that the Fed keeps rates somewhere between 0% and .25% through March 16th, 2010.Dollar On The Rise?
12/07/2009
The dollar rose to its highest level in a month against the euro as investors question whether central banks will increase rates in the near term. Right now, the futures market is pricing in an 80% chance that the Fed keeps rates somewhere between 0% and .25% through March 16th, 2010.Stock Futures Are Up
12/04/2009
Nonfarm payrolls printed much better than expectations, -11K vs. -125K concensus; the unemployment rate dropped to 10.0% from 10.2%. Bonds and commodities are down; stock futures and the dollar are up.Jobless Claims Drop
12/03/2009
Jobless claims dropped to a one-year low and nonfarm productivity remains elevated, both signs that the labor market may be improving. Bank of America will repay $45B in TARP by the end of the year, using $26.2B of "excess liquidity" and $18.8B from the sale of securities.Today's Market Color
12/02/2009
ADP printed slightly worse than expectations, -169K; consensus for Nonfarm Payrolls on Friday is -123K. Concern over Dubai has continued to diminish as emerging-market stocks are up for a third straight day; treasuries are hovering around unchanged.Global Equities Up
12/01/2009
Dubai World began talks to restructure $26B of debt and said that the rest of their liabilities are on "a stable financial footing". China's manufacturing expanded at the fastest pace in five years. Global equities are up; the dollar and bonds are down.Today's Market Color
11/30/2009
Dubai shares have dropped the most in eight years this morning on the first trading day since the government announced that the state-runDubai World, with $59B in liabilities, may have to delay debt payments. Traders are tryingConsumers Spending More
11/25/2009
In the economic releases this morning, the data showed that the consumer is spending more, durable goods orders are down, and initial and continuing jobless claims dropped sharply. Bonds and equities areToday's Market Color
11/24/2009
The US government revised 3Q GDP down to 2.8% from the 3.5% reported last month; the decline was due to a growing trade deficit and a smaller gain in consumer spending. Equities have givenStocks Rallying
11/23/2009
On signs that the central banks will continue to keep rates low around the world, stocks and commodities are rallying this morning; the dollar is down. In a holiday-shortened week, the Treasury isToday's Market Color
11/20/2009
ECB president Jean-Claude Trichet said that policy makers will start to withdraw emergency cash gradually. Stock futures and commodities are down. The Fed reiterated that they willJobless Claims Unchanged
11/19/2009
Initial jobless claims were unchanged week over week at -505K; continuing claims dropped 39K to 5611K. The Organization for Economic Development predicted that the economies forToday's Market Color
11/18/2009
Housing starts and building permits dropped sharply in October as builders showed less optimism with joblessness increasing and certain tax credits are scheduled to cease; MBA mortgage applications declined mildly last week.Today's Market Color
11/17/2009
Producer prices, both headline and ex-food and energy, printed tamer than expectations. Home Depot posted worse than expected 3rd quarter numbers.Treasuries Pushing Higher
11/16/2009
Treasuries have been pushing higher with the market having ridden over the data speed bumps, that were OK, while getting some aid as global bondsaim higher.US Trade Deficit Widens
11/13/2009
The US trade deficit widened in September by the most in a decade due to the demand for oil as the economy started to rebound. Congress will needMortgage Applications Rise
11/12/2009
MBA mortgage applications jumped 3.2% last week; the refinance index was up 11%, the purchase index dropped 12%. Both initial and continuing claims printed better than expectations.SHORT-SALES FUEL DROP IN INVENTORY AND PRICES FOR UPPER-END
11/12/2009
Pended short-sales are up 94% for the last 12 months for homes priced above $400,000.00. “We have already seen a 20% discount in pricing in the upper-end REO market,”Today's Market Color
11/10/2009
HSBC's 3Q profit rose as bad loans decreased; Barclay's earnings dropped 54% from last year due to increasing impairment charges.Today's Market Color
11/09/2009
The dollar is under pressure again this morning after the Group of 20 nations agreed to continue with their economic growth measures; they did not address the weakness in the dollar, causing commodities to rallyToday's Market Color
11/06/2009
Nonfarm payrolls printed at a worse than expected -190K for last month; the unemployment rate jumped to 10.2%, the highest level since 1983.Fed Announcement
11/05/2009
The Fed announced yesterday that they will be purchasing a total $175B of agency debt instead of the $200B originally alotted. This morning,Initial jobless claimsNo Rate Change?
11/04/2009
DP printed in-line with expectations, -203K, the best number since July 2008. No change in rate or language is expected in the FOMC announcement later today.Today's Market Color
11/03/2009
Despite news that Warren Buffett is buying the rest of Burlington Northern for $34B, stock futures are down. The UK bailed out RBS and Lloyds for the second time, injecting another $51B combined.Today's Market Color
11/02/2009
After months of speculation, CIT declared bankruptcy, but said that they will continue their commercial lending while reorganizing. Ford announcedEconomy Recovering?
10/30/2009
Consumer spending decreased in September due to the Cash-for-Clunkers program ending in early August. In another sign that the global economy may be recovering, the Bank of Japan willStocks Rallying
10/29/2009
3rd quarter GDP printed much better than expectations, the first quarterly expansion in more than a year, due to household purchases increasing 3.4%. Stocks areToday's Market Color
10/28/2009
MBA Mortgage Applications were off 12.3% last week after dropping 13.7% the week before. GMAC may receive a third government bailoutHome Price Forecasts
10/27/2009
There is still a fair amount of variance in projecting home prices over the next few years. Goldman stated that "the risk of renewedCommodities on the Rise
10/26/2009
The dollar continues to fall in early morning trading; commodities are rising.Existing Home Sales Increase?
10/23/2009
Existing home sales are scheduled to be released later this morning and are expected to show a month-over-month increase.Today's Market Color
10/22/2009
Initial jobless claims printed worse than expectations; there was a week-over-week drop in continuing claims.Today's Market Color
10/21/2009
Mortgage applications dropped by 13.7% last week. Morgan Stanley beat analyst estimates for the 3rd quarter ($0.38/share vs. $0.30/share) due to higher investment banking fees;Today's Market Color
10/20/2009
Despite a falling dollar and an economy that appears to be improving, PPI printed much worse than expectations.Stocks Continue To Rally
10/19/2009
Fed Chairman Bernanke is scheduled to speak later today on the economic outlook; no change in sentiment is expected.Today's Market Color
10/16/2009
After JP Morgan and Goldman reported strong quarterly earnings earlier this week, Bank of America announced that they lost $1B in the third quarter.Today's Market Color
10/15/2009
Initial and continuing claims printed better than expectations, with small downward revisions to the previous week.Stocks Rallying Aggressively
10/14/2009
Mortgage applications declined by 1.8% week-over-week; purchases were off 5%, refinances were down 0.1%.Gold at Record High
10/13/2009
With the bond market closed yesterday, equities continued to rally.Inventory and Sales are Down
10/12/2009
Declines in inventory and sales are normal for fall; what is not normal is the increase in pending sales in all price brackets.Trade Deficit Narrowed
10/10/2009
The trade deficit narrowed in August as exports climbed. In a sign that other economies are improving,Continuing Jobless Claims Improve
10/08/2009
Initial and continuing jobless claims printed much better than expectations; stock futures are rallying.Commodities Rally
10/07/2009
Mortgage applications jumped 16.4% last week due to lower rates.Today's Market Color
10/06/2009
It is another quiet day in terms of economic data. There is a $39B 3yr auction today; $20B of 10yrs tomorrow; $10B of 30yrs on Thursday.Global Equities
10/05/2009
Global equities were down after Nouriel Roubini predicted that the economic recovery would disappoint investors and that “markets have gone up too much, too soon, too fast”.Today's Market Color
10/02/2009
Nonfarm Payrolls printed worse than expectations, -263K, and the unemployment rate rose to 9.8%.Today's Market Color
10/01/2009
Initial jobless claims printed worse than expectations, coupled with a downward revision to last week; continuing claims data was mixed.Today's Market Color
09/30/2009
ADP printed worse than expectations, -254K vs. -200K consensus, showing more job losses than anticipated in the private sector.Equities at Highest Valuations in Five Years
09/29/2009
It is another light day on the economic calendar with home price and consumer confidence data due out later in the morning.Stock Futures Are Up
09/28/2009
It is a slow day on the economic calendar ahead of a busy week. ADP is scheduled to be released on Wednesday (consensus is -200K); Nonfarm Payrolls will be released on Friday (consensus is -180K).Today's Market Color
09/25/2009
August Durable Goods orders dropped, partly due to the pullback after the Cash for Clunkers program ended. The G-20 continues their meeting today;Fed Announces Extension
09/24/2009
Yesterday, the Fed announced that they would extend the MBS purchasing program for 3 months, but did not increase that amount that would be bought from the original $1.25T.FOMC Announces Decision Today
09/23/2009
The FOMC announces their decision this afternoon. Even though no rate move is expected, there is debate on whether or not any exit strategies/timelines from the various markets that the Fed is involved in will be discussed.Home Prices Stable to Increasing below $300,000
09/23/2009
REO listings under $300,000 have seen prices increase 6% since April 2009, while Short-Sales and Non-REO listing prices under $300,000 have been flat over the same time period.FOMC Two-day Meeting Starts Today
09/22/2009
The FOMC begins their two-day meeting today. With their announcement scheduled for tomorrow afternoon, market participants are curious whether the Fed will address exit strategies from the different markets that they are involved in.Today's Market Color
09/21/2009
It is a quiet day on the economic front ahead of Wednesday’s FOMC decision and $112B of Treasury supply hitting the market Tuesday-Thursday.Today's Market Color
09/18/2009
There is no economic data scheduled for release today. Stocks and commodities are off due to rising copper inventories.Housing Starts Best in Nine Months
09/17/2009
Initial jobless claims printed at the lowest level in two months; continuing claims remain elevated. Housing starts posted the best number in nine months.Today's Market Color
09/16/2009
The year-over-year CPI print of -1.5% was less deflationary than expectations; the core month-over-month number was in line with consensus.Retail Sales Are Up
09/15/2009
Retail sales posted a 2.7% increase, the most in 3 years; bonds are off.Today's Market Color
09/14/2009
Global equities are off on fears that stock prices have outpaced the prospects for earnings growth; commodities are down.Import Prices Climb
09/11/2009
Import prices climbed more than expected due to a weaker dollar.Jobless Claims Better Than Expected
09/10/2009
Both Initial and Continuing Jobless Claims printed better than expectations, with mild upward revisions to the previous week; the trade deficit widened by 16%, the most since 1999, due to auto demand caused by the “Cash for Clunkers” program.Mortgage Applications Surge
09/09/2009
MBA mortgage applications jumped 17% last week; the refinancing index was up 22.5%, the purchase index increased 9.5%.Global Equities Rally
09/08/2009
Gold broke through the $1,000/ounce threshold, causing global equities to rally; the dollar is down.Nonfarm Payrolls Better Than Expected
09/04/2009
Nonfarm Payrolls printed slightly better than expectations, -216K vs. -230K consensus, with a downward revision to the previous month.Daily Market Color
09/03/2009
Initial and continuing jobless claims printed worse than expectations.Daily Market Color
09/02/2009
The ADP print was worse than expectations, -298K, which may cause some analysts to worsen their estimates for Nonfarm Payrolls on Friday, currently -225K.Daily Market Color
09/01/2009
Chinese manufacturing increased at the greatest pace in over a year due to a record amount of lending, spurring a rally in copper and other commodities.Bonds Up Slightly
08/31/2009
Due to fears that equity prices have outpaced actual economic fundamentals, global stocks and US futures are down; bonds are up slightly.Consumer Spending Increases in July
08/28/2009
Consumer spending increased in July mainly due to the “Cash-for-Clunker” program.Jobless Claims Improve
08/27/2009
Initial and Continuing jobless claims improved slightly week over week.Mortgage Applications Are Up!
08/26/2009
MBA Mortgage Applications rose by 7.5% last week; refinancing was up by 13%, purchases were 1% higher.Economy Pulling Out of Recession?
08/24/2009
Both Federal Reserve Chairman Ben Bernanke and ECB President Jean-Claude Trichet said that the world economy is showing signs of pulling out of the recession.US Stock Futures Are Up
08/21/2009
After a 60% rally in stock prices, China plans to tighten capital requirements for banks.Daily Market Color
08/20/2009
Initial Jobless Claims continue to be weak, rising 15k from last week; continuing claims remain elevated.Mortgage Applications Jump
08/19/2009
Mortgage applications jumped 5.6% last week: refinancing up 6.9%, purchases +3.9%.German Investor Confidence Rising
08/18/2009
PPI printed lower than expectations due to falling energy prices; housing starts and building permits fell slightly from last month.Daily Market Color
08/17/2009
Foreign stock and US stock futures are down on concerns that the global economy may worsen; bonds are up.Short-Sale Pending Accelerate
08/14/2009
Short-sale inventory is declining as quickly as REO inventory, and there are three times as many short-sale pended escrows as there are closed escrows.Bonds Are Up
08/14/2009
CPI was unchanged in July, showing that inflation is under control; bonds are up.Daily Market Color
08/13/2009
The economies in Germany and France unexpectedly grew in the second quarter, giving evidence that the recession in Europe may be coming to an end.Daily Market Color
08/12/2009
The trade deficit was narrower than economist estimates due to increased exports.Market Color
08/11/2009
Nonfarm productivity jumped from 0.3% to 6.4% in the second quarter, mainly due to job cuts.Low Inventory Pushes Prices Up
07/15/2009
For the third month in a row, price per sq/ft, median and average prices have risen for homes priced below $750,000.00. With fewer than expected bank-owned properties hitting the market together with low interest rates, buyers are finding slim-pickings.Transitional Market Creates Opportunities
06/18/2009
Even though sales have slowed going into June due to interest rate increases; the median price, average price and price per foot went up in May due to inventory levels below three months. If you are priced to sell, homes are selling in 60 days.Short Sales on the Increase
05/11/2009
In a reaction to REO inventories now below one month’s supply, more buyers are turning to short-sales in hopes of snagging the home of their dreams.$8000 Homebuyer Tax Credit!
05/08/2009
A tax credit of up to $8,000 is now available for qualified first-time homebuyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.Bank Owned Inventory is running out!
04/10/2009
It may only be a product of the many moratoriums on REO sales, that has dropped inventory levels down to just one month and below a month for pending sales which have jumped 24%,” said Michael Lyon, CEO of Lyon Real Estate. “The average REO sold price is hovering at $180,000 for the last three months.
