1.CONSTRUCTION spending is UP to the highest levels seen in Eight months!
2.China's manufacturing index indicated that their output was at a 3 month high which signals things may be starting to turn around worldwide.
3.Personal income report shows we are making more money than expected.
4.Personal Spending report shows we are spending more money than expected.
5.ISM index came in better than expected. (Remember that the ISM index is based on surveys of about 300 factory reps regarding existing orders, production levels etc. It is a GREAT view of the condition of the manufacturing
sector.)
6.Personal consumption expenditure report shows we are paying more for goods and services than expected. (Mild inflation for now.)
This in conjunction with FINALLY having an official declaration of Bankruptcy by GM behind us and the news that GM and CITIBANK are being removed from consideration in the DOW were good for the mood of investors.
Investors moved a BUNCH of money from bonds into the stock market and the DOW closed UP 221 points. Cisco and Traveler's Insurance are being added to the 30 stocks that make up the DOW to replace GM and CITI.
Rates on the 30 year fixed are in the 5.25% range so still EXCELLENT...but the FNMA took a DIVE today to $97.00 and was DOWN 153 bps from the start of the session. Tim Geithner is in China this week trying to encourage them to continue buying our bonds...with no luck. The 10 year t-note is DOWN $175 bps today. With no end to the "Printing" of money in sight...investors are not buying right now.
OIL is at a 7 month HIGH trading in the $69.00 range. Don't expect that to let up any time soon with summer demand and encouragement to put pressure on energy prices to stimulate research and spending on Green Energy.
Have a Great Day!
