Monday, January 4, 2010

Market UpDate

Monday's bond market has opened in positive territory despite early stock gains and stronger than expected economic data. The stock markets are starting the new decade with a sizable rally. The Dow is currently up 133 points while the Nasdaq has gained 32 points. The bond market is currently up 6/32, which should improve this morning's mortgage rates by approximately .375 of a discount point over Thursday's morning rates.
The Institute for Supply Management (ISM) gave us today's important data when they posted their manufacturing index for December late this morning. They reported a reading of 55.9, meaning that manufacturer sentiment about business conditions was stronger than thought. This normally is bad news for bonds and mortgage rates since it points towards a strengthening manufacturing sector. However, fortunately for mortgage borrower it appears that the data is being ignored this morning.
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