Market Snapshot Friday June 7, 2019

hot weather balloons

Good Morning on this fantastic Friday,

 

Good insight from Dan Rawitch this a.m.:

 

The 10-year is up again and now yielding 2.07%, as we speed toward a sub 2% yield! MBS are doing ok, but not as great. The jobs report was released and components were TERRIBLE. Only 75,000 jobs created while the market was looking for 180,000. Not to mention wage growth was nonexistent and missed expectations. Lastly, for the second month in a row, wholesale inventories grew because of insufficient sales. The crazy thing is that the DOW is up again, and this time 300 points. Unbelievable and what an amazing gift that Stock Market investors are getting. The problem is that this is not a gift that will keep on giving, it is a gift that will be taken back, once the market comes to its senses and realizes that the reason the FED must ease is due to economic slowing. I believe when he gives his post “we lowered rates” speech, the stock market will wake up and have to hear the Feds market concerns.

 

For now we remain range bound in the MBS. If we do not breakout today, it is because the stock market has the spot light and is dragging investor funds over the wrong side of the fence

 

Germany Growth for 2019 was cut from 1.6% to .6%. that doesn’t bode well for the EU as Germany is the largest economy and floats a lot of negative growth from other members. This will of course bleed over global economies in some smaller way.

 

Do you feel wealthy yet? U.S. household wealth rebounded to a record in the first quarter as the stock market recovered from a plunge in the prior period, supporting consumers after Federal Reserve interest-rate hikes and trade-war shocks rattled investors late last year. Net worth for households and non-profit groups increased by $4.69 trillion, or 4.5%, to $108.6 trillion after a 3.7% drop in the prior period, Federal Reserve data showed Thursday. Household debt growth slowed to a 2.3% annual pace, the least since late 2015, from a 2.8% rate in the prior quarter

 

That’s it for now. Rates should be lower with the movement in Treasuries. I am confident it will come, but I also suspect stocks will have to crack first.
Enjoy the weekend and first, make today great!