Tuesday, March 17, 2020

Daily Market Report 3/17/20

http://MikesDailyMarketReport.com: Happy St. Patrick's Day!  Today, we have Retail Sales, which dropped 0.5% in February; and when you remove Autos, then it dropped 0.4%.  However, Industrial Production rose 0.6% in February.  Capacity Utilization rose from 76.8% to 77.0% in February.  Home Builders are feeling a little less confident in March, as the NAHB Home Builder's Index went from 74 in February to 72 in March.  Business Inventories dropped 0.1% in January.  Stocks are trying to rebound after the worst trading day since October 1987, as the DOW dropped 3k.  Right now, it's Up about a 100.  The coronavirus is having a major impact on the US and Global Economy, as it's coming to a complete shutdown in order to contain the spread; and there are warnings that this might even last deep into summer.  At this point, a recession is a matter of when, not if.  MBS is currently up 6bps, after starting in negative territory.  Mortgage Rates remain Unchanged.  There's still a bit of capacity issue with Lenders.  I'm seeing some positive movements, but we're not quite there yet.  Yields have worked their way up to .77%.

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