http://MikesDailyMarketReport.com: Weekly Jobless Claims dropped from 212k from previous week to 211k last week; another good sign for Jobs. However, we show Manufacturing and Services Industry slowing down. Markit Manufacturing PMI flash dropped from 52.6 in April to 50.6 in May; and Markit Services PMI flash dropped from 53.0 in April to 50.9 in May. Both indexes are showing that both industries are on the verge of contracting (anything above 50 on these indices is expansion, and below is contraction). Also, New Home Sales dropped in April. They went from 723k annualized units in March to 673k in April. Stocks are trading way Down today, as Investors are realizing the tensions between US and China are only escalating and both sides seem to be digging in for the long-haul. Catch the video for more info, but this tension is becoming more Global, as more companies in other countries sever ties with Huawei in order to comply with US regulations. Also, Markit Manufacturing out of Europe contracted further, as they're forced to cut staff (first since 2014). MBS is Up 9bps, so coupled with yesterday's improved movement, Mortgage Rates have improved some today. Meanwhile, Yields have dropped all the way down to 2.33%.
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