FNMA 4.5% took another dive today and is trading at $101.81 at the bell. Down on the day about 25 basis points after some "good" readings on initial unemployment claims. We seem to be trending down there and today's report indicating only 457,000 filing for unemployment vs. the 480,000 that was expected was good news to many. This is the 2nd week in a row we have seen less than 1/2 million claims. News was recently released that Obama has extended unemployment benefit to 1.5 years...for better or for worse I suppose.
Bank of America announced that they will be paying back their 45 billion dollar TARP money loan in the next few days. This is good news and allows them to escape some of the government control that was imposed while they were "under the influence" of the "TARP" monies....read more here: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/12/02/financial/f143547S13.DTL
Manufacturing for the month is down over last month and the ISM reported lower than expected. What is the ISM index? It is a composite number put together by interviewing about 300 manufacturing CEOs and or purchasing directors to get a "street level" view of manufacturing. Remember if manufacturing and orders are UP...it spells good news for the economy in the near future as it means someone is spending money. Investing always involves prediction of the future...and these kind of reports help to do just that. ISM was reported on the 1st of the month.
The ISM SERVICES index was reported today. It also came in slightly lower than expected and involves about 370 surveys of NON manufacturing service providers to get a view of how things are going there.
FEDS will auction off about $74,000,000,000 (is that enough zeros to show 74 billion dollars?) worth of t-notes next week. That announcement weighted down the market in addition to the general excitement for investors to preserve their profits by cashing in on the recent run-up in values in the securities market this last few weeks.
New York Fed purchases $16 billion net ($16 billion gross) in agency mortgage-backed securities and we are getting close to being done with the program. The money is supposed to last until the first week of March...we will have to see what happens after that.
DOW is off 86 points today...
Have a great afternoon!
Chad
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Chad Schauers
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
cschauers@metlife.com
