FNMA 4.5% Down just 3 basis points...after spending much of the day underwater. Feds announced that they are going to auction off 123 BILLION dollars in T-notes next week...WOW. Feds purchased about 18.1 BILLION in Mortgage Backed Securities last week with a focus on coupons that encourage rates to stay steady in the 5% range. Because of this...they didn't buy securities that will be soon sold back...and it has kept things together. $959 BILLION has been spent of the $1.25 TRILLION that they were going to spend. Dow is UP 131 points...and back OVER 10,000 points. Wal-Mart reported better than expected earnings among other drivers there. CHINA released news today suggesting that the worst of it is over for them and they will begin to tighten their policies again. They invested close to $700 billion in their economy. The perception is that they are on their way out of this bathtub despite global demand for their goods being on the decline. China is starting to be an exporter of more than just cheaply produced goods and are well on their way to emerging as a world superpower...whether we like it or not. HIGHER than expected initial claims of unemployment showing that over 1/2 million people filed for unemployment last week. The number of "ongoing" claims is lower than it has been for several months...but some speculate that this is based on the fact that the unemployment benefit has ran out for many who are still seeking jobs. Enjoy the eve! Chad |
