For information on highlighted terms in the commentary, click here. Existing home sales beat expectations, jobless claims rose for the first time in weeks, and stocks fall on the news. Negative job data will trump positive economic news the majority of the time. Investors see positive news as temporary. Once they see the news coupled [...]

For information on highlighted terms in the commentary, click here. The Fed statements yesterday continued the belief that the recovery is underway, but happening at a sluggish pace. Investors reacted by selling off stocks and seeking the safety of bonds. The Fed also indicated that they would continue their investments in the Treasury Market if [...]

For information on highlighted terms in the commentary, click here. In yesterday’s Market News, we stated that even if housing numbers came in above expectations, stocks would not rally. This morning, housing data showed a significant increase in housing starts, but mainly in multi-unit building, not single family homes. As anticipated, investors have not jumped [...]

There may be some increases in the sales data for new and existing homes “but no one is going to take them as a sign of new momentum,” said Scott Brown, chief economist at Raymond James & Associates Inc. Jobs continue to be the pivotal deficiency that keeps the economy from making significant leaps forward. [...]

For information on highlighted terms in the commentary, click here. Weak manufacturing data released this morning has kept both stocks and bonds trading relatively flat. In general MBS have regained some of the losses they experienced since the end of August, but are not back to their historical highs. We will be watching stocks closely [...]

For information on highlighted terms in the commentary, click here. Stock prices are stabalizing after a rally on Monday. The Dow has been up 8 of the last nine sessions, and this has hurt MBS prices. We have seen mortgage bond prices on 30-year fixed loans erode by about 150 basis points since the beginning [...]

“The retail sales number is a huge for the economy. The weaker the retail sales number, the more it tells you consumers are in the retrenchment mode,” Hugh Johnson, chairman and chief investment officer at Hugh Johnson Advisors. Johnson agreed with President Obama’s assessment that the economy is growing, but at a sluggish pace. Double [...]

For information on highlighted terms in the commentary, click here. With no economic data due out, stocks are regaining some of yesterday’s losses. A Treasury Auction was met with neutral response yesterday so we will be watching today’s auction closely. MBS prices are down as investors are turning back to stocks. At the moment, the [...]

For information on highlighted terms in the commentary, click here. The Holiday shortened week is starting off well for MBS. Bond prices are up as stocks fall over renewed fears of European exposure to sovereign debt. Analysis by The

For information on highlighted terms in the commentary, click here. After weak manufacturing numbers came out yesterday and a poor employment report led the news today, we were expecting another rough day for stocks. However, additional data showed that manufacturing had actually exceeded expectations. Strong growth in Australia and China has pushed investors back into [...]