Market Snapshot April 11, 2018

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Good Morning on this best day of the week: Wednesday,

 

Is it me or does it seem like every time there is a headline putting a little heat on Mr. Trump, shortly thereafter there is another headline of bigger proportion shifting the focus? Whether you agree with the politics or not, the manipulation is masterful. Today the shiny object was a tweet from Mr. Trump warning Russia of upcoming retaliatory missile strikes in Syria (do we normally telegraph when we are going to throw a punch?). So despite the expectedly strong CPI data (below), Stocks are down 100+ and bonds are holding up well. The 10-yr at 2.78% and mortgage bonds -8bps. There is a 10-yr Treasury auction in an hour and then the Fed minutes will be out at 11 am. We will see how markets react to the commentary, but an airstrike would have a negative economic impact on the US. Stocks would have a hard time, bonds would improve.

 

  • March Consumer Price Index MOM -0.1% vs est of 0.0%
  • CPI YOY 2.4% vs est of 2.4%
  • Core CPI MOM vs 0.2% est of 0.2%
  • Core CPI YOY 2.1% vs est of 2.1%

 

And keeping the info transparent, here is a glimpse on the underlying tone of the public, Freddie Mac Multifamily reported in its “Profile of Today’s Renter” that 55 percent of renters say they believe their next residence will be a rental.

 

Make today great!