Thursday, April 9, 2020

Daily Market Report 4/9/20 Last week's Initial Jobless Claims Report was revised higher, from 6.6 million to 6.9 million.  This week's report had 6.6 million people applying for Unemployment Benefits for the first time; so now, we're looking at approximately 17 million on Unemployment within a 3 week period.  The inflation data in the Wholesale sector remained very tame, as it's Core PPI remained Unchanged YoY at 1.4%; whereas, it's MoM rose 0.2% in March.  The headline data for the Producer Price Index (PPI) dropped 0.2% in March.  The Consumer Sentiment continued it's decline, as it went from 89.1 in March to 71.0 in April.  This is the lowest it's been since 2011.  Wholesale Inventories continue to show a decline, as they declined 0.7% in February.  Stocks are in Positive Territory this morning.  Even though the Jobless Claims are concerning, they are being swayed by the Fed's recent pledge of another $2.3 Trillion toward loans to companies of 10k or less, which will be 4 year loans, and payments will be deferred for 1 year.  Even those whom accepted the PPP loan are still eligible for this program.  Investors are closely watching OPEC and key Oil Producers as they talk about production levels.  They're hoping they stay out of a price war again and stabilize the Energy sector.  MBS is Up 33bps, so we will see some improvement in Mortgage Rate pricing today.  Yields are down a bit, as they are currently sitting at 0.72%.  The Markets will be closed tomorrow for Good Friday, so there won't be any video tomorrow.  I'll see you in the next video on Monday, the 13th.  Have a good Easter weekend!

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