Good Morning on this best day of the week, Wednesday,
Mortgage bonds are up from yesterday. The 10-yr back to .68. Stocks started off very strong and have since settled back a bit as tech shares are declining. Later today the Fed releases their Beige Book and sometimes we learn interesting things. I will be watching this. The Dow is up over 200 points but NASDAQ is down 70 points. S&P is flat and struggling to break and stay above the 3000 price level. This level is also where the 200 day moving average sits. If we break above, I expect a big move up in price which would be baaad for bonds and rates.
In line with some of the comments I made yesterday, which will have to be reconciled, the WSJ shared that:
Stocks have rebounded dramatically off their March lows, while consumer sentiment is hovering near the lowest level in nearly a decade. The divergence is one of many realities investors are struggling to reconcile. The spread between the monthly percentage change of the S&P 500 and the University of Michigan’s consumer sentiment survey climbed to 32 percentage points last month, the widest-ever gulf in data going back to 1978, according to Dow Jones Market Data.