http://MikesDailyMarketReport.com: Personal Income rose 10.5% in April. We think this anomaly is due to the disparity based on the lower pay scale employees losing work during the pandemic. Consumer Spending dropped 13.6% in April, as much of the economy was closed. The Personal Consumption Expenditure (PCE) dropped 0.5% in April, while it's YoY dropped from 1.3% to 0.5%; similarly, the Core PCE (which removes food & energy; and Fed's favorite gauge for inflation) dropped 0.4%, and it's YoY dropped from 1.7% to 1.0%. The Fed's target rate for Core PCE is 2.0%, which this new numbers greatly distances from it. The manufacturing sector in the Chicago region continued to decline in May, as the Chicago PMI reported it dropping from 35.4 to 32.3. There wasn't much movement from Consumers, as Consumer Sentiment remained fairly idle. It rose from 71.8 to 72.3. Stocks are Down this morning on an upcoming news conference with President Trump, whom will talk about China. This has investors a bit on edge. Fed Chair Powell was webcasted this morning, while he did an Q&A at Princeton. He mentioned that he has plenty of tools to help the economy and isn't currently looking to go into a negative interest rate environment. MBS is in a very tight range and currently Up 14bps, so Mortgage Rates will have a little improvement in pricing this morning. The president's news conference could be a catalyst to which direction MBS will move, as it's becoming squeezed between it's 25 DMA and 50 DMA. Yields are down and sitting just atop it's 25 DMA at 0.66%.
If you're located in California and looking to either buy a home or refinance and would like my assistance, then please click on the following link and answer a few questions: HERE
Please subscribe to my Blog and YouTube Channel at MikesDailyMarketRpt
No comments:
Post a Comment