http://MikesDailyMarketReport.com: Both Manufacturing and Services Sectors are shrinking according to the Markit Flash PMI Indices. The Markit Flash Manufacturing PMI dropped from 50.5 in May to 50.1 in June. The Markit Flash Services PMI dropped from 50.9 in May to 50.7 in June. Anything above 50 in these indices indicates expansion, so they're approaching a contraction level, if they continue this path. However, we did get good news from the Housing Sector, which Existing Home Sales jumped Up from 5.19 million annualized units to 5.34 million in May. This was a 2.5% Month-over-Month Increase; however, April was revised higer, so without the revision, the MoM would be closer to 3.0% improvement. Stocks are trading in Mixed Territory. S&P are down today, after it hit record territory yesterday, so it's taking a bit of a breather today. A few members of the Fed are speaking, which reiterates the possibility of a rate cut coming in July. However, this may turn into a possible debate of how much of a cut, .25% or .50%? Investors are still optimistic that the US and China will return to the table to complete Trade negotiations. Also, on the minds is the escalating tension between the US and Iran. Iran is being blamed by the US for attacks on Oil Tankers passing by the Strait of Hormuz; and President Trump mentioned that he halted a last minute retaliatory strike against Iran for the missle strike on a US drone. MBS is down 13bps, so Mortgage Rates are down from yesterday's pricing. There was a price change (for the worse) late yesterday, as the MBS' rally deteriorated. It is currently below the previous tough ceiling, but this is most likely a temporary situation, and I believe the rates will continue to improve. Yields rose above it's previous tough floor of support, but again, I believe it will fall beneath this layer again. It's currently sitting at 2.05% If you are looking to refinance or buy a home, then please feel free to DM. I can help with the financing.
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