Hey there!
Today we say further deterioration in the bond market...and minor gains in the stock market...and oil with other commodities seemed to hold there own in value as well.
SO: Mattress money? Are people pulling out of the market? Note sure.
FNMA 4.5% bond lost another 38 bps...which closed higher than it had been during the day. Rates still in the low 5% range but not at the sweet spot we saw for a few hours on Friday afternoon.
FORD benefitted MORE from the "cash for clunkers" government program than the "others" did from BILLIONS in "DIRECT STIMULUS". Go figure: give the money to the people...and provide incentive to them for purchasing a new car vs. give the funds to the corporation who is in their position from mismanaging funds. Another example of appropriating funds to the "free market" vs. tightening government control of an industry. Which one worked better? Ford was trading at just over a dollar a share in February and is now over 8 bucks. Gm is still in the dumps.
Another POSITIVE: Homes under contract for sale INCREASED showing an increase for the 5th month in a row. The number of homes under contract came in WAY better than expected...
Tomorrow we hear the ADP employment report which draws data from payrolls of THOUSANDS of businesses to indicate joblessness...it is a preview to the jobs report. It could move money around in the markets.
THURSDAY: we get to see how the money the feds are spending in the bond market was appropriated AND hear what kind of t-note auctions are coming next week.
Dow was up 33 points and oil was still at 71 dollars or so.
Have a great eve!
Chad
