Market Update Tuesday November 18th

The big news of the day was the Producer Price Index, which indicated that wholesale inflation plummeted last month the most since records began in 1947. However, this decline was largely due to a 25% drop in gasoline prices. On the other hand, the Core PPI--which excludes fuel and food--rose more than expectations, and the year-over-year Core PPI was up the most in nearly 20 years.

In other news, Hewlett Packard surprised Wall Street by announcing that preliminary 4th quarter and 2009 earnings will beat estimates. The news has helped Stocks recover from a lower open.

Currently, Mortgage Bonds continue to trade near the 200-day Moving Average for the 10th consecutive day.

Market Update Thursday 13th

Bonds are facing some selling pressure this morning, as Stocks are attempting to stabilize and move higher after three days of hard losses. The modest rally in Stocks is a bit puzzling when you consider the continuing barrage of bad news, including lower future earnings guidance from Wal-Mart and Intel as well as the worst initial unemployment claims data since 2001.
In other news, a $10 Billon auction in 30-year Treasury Bonds will hit the market at 1 pm Eastern Time. If the auction is not well embraced, Bonds could face additional selling pressure.
Currently, both Stocks and Bonds continue to trade near important support levels.

Market Update Wednesday November 12th

Mortgage Bonds are trading higher so far this morning, in reaction to continued weakness in the Stock market.

Adding to the negative sentiment in Stocks this morning are the poor earnings outlooks for Best Buy and Macy’s. These negative outlooks come right on the heels of Circuit City closing 150 stores. Suffice it to say, this holiday season doesn’t look good for retailers.

There are no economic reports due out today, but at 1 pm Eastern Time the Treasury is set to auction off $20B in 10-Year Notes. If this auction is not well received, it could temper the current rally in Bonds.

Market Update Friday November 7th

The Labor Department's Jobs Report came in much worse than analysts expected, with 240,000 jobs lost in October. In addition, the Unemployment Rate jumped to its highest level since 1994.
In market news, Stocks are coming off their worst back-to-back days since the 1987 Stock Market crash. Although Stocks opened higher this morning, they could be in for more of a decline as today's poor Jobs Report sinks in. This could create selling pressure on Stocks, which may help bonds improve.
Currently, prices are battling a strong ceiling of resistance. Should prices break out above current levels, it would be very bullish.

Market Update Thursday November 6th

Mortgage Bonds are trading lower this morning after enjoying a nice three-day rally higher. This comes on the heels of big news from overseas in which both the Bank of England and the European Central Bank cut their benchmark interest rates. The good news is that these cuts should have a positive effect on the US Dollar and on Oil prices.
Tomorrow, the Labor Department releases its Jobs Report for October, and the markets are already expecting a lousy report.

Market Update Wednesday November 4th

Mortgage Bonds are following through on yesterday's huge rally, and are getting an additional boost from today's weak ADP Employment Report. ADP reported that 157,000 jobs were lost in October, the most in 6 years. Stocks are also down this morning, which is providing a boost to Bonds as well.
Prices started the day right at the 200-day Moving Average and have since powered higher. Should Bonds be able to sustain these gains, the 200-day Moving Average would once again become an important floor of support for prices.

Market Update Tuesday November 4th

Election Day is finally here, and Mortgage Bonds are trading slightly higher so far this morning. With no major economic news due out today, Bonds will likely take their direction from Stocks. Currently, Stocks are trading higher, which could put pressure on the Bond markets.
In other news, Australia's central bank cut interest rates more than expected, and the European Central Bank could slash interest rates later this week to help contain the global financial crisis. That should help the US Dollar gain more strength, while also helping to lower oil prices.