Market Snapshot February 6, 2018


Good Tuesday AM,


At least it’s interesting… Stocks tumbled yesterday with the Dow closing own 1175 points.. Bonds had a great day on the heels of stocks, but really that only took us back to last Thursday’s pricing. Overnight, stocks looked to be headed down another 1200 but as I am sitting here, the Dow is up 140 points. If you like volatility, these are your days to shine. I would think that although equities are still overbought with room to dip further, yesterday’s sell off (and last Thursday’s and Friday’s for that matter) created an opportunity for bulls to buy back in. We will see if it holds. Bonds have already given back more than half of yesterday’s gains and the 10-yr is at 2.77% and mortgage bonds are   -25bps I am not going to guess which way it goes from here… still sticking with the same game plan of play defense.


Wells Fargo got slapped again. The Federal Reserve has restricted Wells from growing beyond the $1.95 trillion in assets it had at the end of last year “until it sufficiently improves its governance and controls,” the Fed said in a statement. Wells Fargo estimated that the cap will cut its annual profit by $300 million to $400 million this year, as it reduces some parts of its balance sheet, like corporate deposits and trading assets, in order to continue growing core businesses. That represents 1.5 to 1.9 percent of the profit Wells generated in 2017. The bank will also replace three board members by April and a fourth board member by the end of the year, the Fed said, without naming who they should be.


All for now…


Make today great!