http://MikesDailyMarketReport.com: Retail Sales came in much hotter than expected, as it improved by 17.7% in May; and it jumped up 12.4% when you exclude Autos. Industrial Production improved by 1.4% in May, which was a little under expectations of 2.8%. Capacity Utilization, also, slightly rose up to 64.8%, which was below the 66.8% expectations. The NAHB Home Builders Index rose 21 points to 58, which measures the confidence of Home Builders. Business Inventories dropped 1.3% in April. Stocks started Up quite high this morning, which continued a trend in yesterday's stock turn-around (approximately by 800 points in the DOW). Yesterday's turn-about was based on the Fed's expansion in Corporate Bond purchases in the Secondary Market. Today, Stocks started higher based on the Retail Sales and Home Builders Index; but also good news on Dexamethasone, which may be helpful for those whom have been infected with the coronavirus, as a means to lowering the death rate. Stocks and MBS are really swinging in varying directions currently, while the Fed Chair has been testifying before the Senate Committee. Currently, MBS is Down 9bps and is now sitting between the 25- and 50 DMA. I'd say that Mortgage Lenders will price their Mortgage Rates a little worse today, in order to cover themselves with this volatility. If it closes at the -9bps level, then it may benefit us going forward, which we've seen trends reverse (see the video and it's graph for clarification). Yields have been wild too! They closed yesterday way down, at 0.65%, and below it's 25- and 50 DMA; however, this morning, it jumped up 10 points to 0.75%, and above it's 25- and 50 DMA.
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