Hey there looks like we saw MORE relief in the bond market with the FNMA 4.5% bond recovering another 62 basis points. Remember that when the prices for these bonds which are mortgage backed securities goes UP: rates go DOWN...

The Empire State Index came out today with weaker than expected data showing that manufacturing continues to contract. What is it? This is a survey of about 175 manufacturers in New York State (usually the CEO fills it out) and it shows how "things" are doing. Questions range from how many orders are coming in for goods to have there been any changes in the amount of hours your employees are working. If you can imagine it is helpful information when investors are trying to predict movement in the economy.

The National Association of Home Builders put out builder confidence reports for May today and we see that builder confidence is down somewhat over the optimism we saw in April.

Good NEWS! An economist from Goldman Sachs put out a statement today that they are predicting "inflation" will stay in check for a while.

The US dollar showed some strength today against other world currencies so commodities relaxed a little bit. Remember that when inflation appears eminent: investors tend to invest in the things that will have "inflated" value like commodities to protect their investments. Both stocks and bonds are hurt by inflation. (Stocks because goods and services cost more to produce so profits are slimmer and fixed rate investment like bonds because the "fixed returns" are not "worth as much" monthly.)

Have a great week and welcome to Monday evening!

Chad


P.S. Most of these are archived at www.chadcan.com if you would like to check them out!