Market Snapshot April 12, 2018

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Good Thursday A.M.,

 

With no new news on tariffs and Mr. Trump backing off any imminent attack on Syria, Stocks are getting a boost, the Dow is up 350+. Bonds on the other hand not seeing any live. Between the move in stocks and yesterday’s release of the Fed minutes, which had a hawkish undertone, the 10-yr is at 2.83% (no bueno) and mortgage bonds are -20bps. The Fed said (again), that they see inflation rising in the coming months and that the economy had continued to firm. Reading between these lines, that means additional rate hikes. That said, the minutes reflected concern over the possibility of a trade war and saw this as a downside for the economy. Other than a significantly negative political event (tariffs, dropping missiles), it looks like bonds are going to continue leaking and rates edging higher.

 

Here’s a crazy statistic from Zillow that will be at least fun to regurgitate. In 24 of the 50 largest U.S. cities, home value appreciation per working-hour is higher than local minimum wage, while renters are struggling just to come up with enough money to break into the market. The report said the typical U.S. homeowner is gaining $7.09 of equity in their home every working hour, $0.16 less than federal minimum wage. But homeowners in 24 of the 50 largest U.S. cities are in a much more favorable position, especially those in the booming tech towns of San Jose, Calif., San Francisco and Seattle, WA. Take San Jose, Calif., for example. In that city, home price appreciation works out to 99.81 per hour–nearly $800 per day. By comparison, the minimum wage in the city is $13.50 per hour, or $108 per day, while the average hourly wage in San Jose is $43.71 per hour, or just under $350 per day.

 

Make today great!