Market Snapshot May 16, 2019
Good Morning on this exciting Thursday,
Bonds are under pressure this morning, as the market is digesting a whole belly full of positive economic news, AND the DOW is up almost 300 points AGAIN.
- Initial claims for unemployment decreased last week, exceeding expectations and indicative of continued job market strength. Claims decreased 16,000 to seasonally adjusted 212,000 versus forecast of 220,000.
- Housing starts increased 5.7% to 1.235 million units versus forecast of 1.205 million. March data was revised higher to show increase annualized increase versus previous report of a decrease in activity. Permits increased 0.6% to 1.296 million after decreasing for three consecutive months. Permits single-family housing decreased for a fifth consecutive month.
- Philadelphia Fed manufacturing index reached a four-month high in May. The index rose to 16.6 versus 8.5 in April and exceeding expectations of 10.1 index. Any reading above zero indicates improving conditions. Previously the New York Fed experienced a six-month high in May with its survey.
It seems the market has again decided to look away from the tariff concerns and the resulting drag on the economy that the trade war will bring. The 10-yr is back to 2.40% and mortgage bonds are off .125% as well. Mortgage bonds are currently sitting on a support level which may not hold unless the DOW decides to cough up some its morning gains.
Make today great!