Market Snapshot May 9, 2019

winter

Happy Thursday Afternoon,
Another late start and the news is again different this afternoon than it was this am. Everyone is just watching the headlines. As the next one comes out, so goes the market. The tariffs go into effect at midnight tonight which is of course significant, but won’t do much damage if a deal can be reached soon. Supposedly President Xi sent a heartfelt letter to President Trump and that may be building a foundation for the agreement. We will see. The 10-yr is at 2.46%, mortgages flat. The PPI data was released today and it was weak. Tomorrow we get CPI and if it weak (as I suspect), it does give the FED more reason to reduce rates. If a trade deal happens, stocks improve and rates likely get worse. If CPI is weak, stocks likely improve and so do rates, lots of combinations out here. It can all go the other way, too. I would lock and float down on a big improvement at this point. The 10-yr cannot get much momentum to improve lately so at some point, it is likely it will worsen.

 

Make today great!