http://MikesDailyMarketReport.com: The Initial Jobless Claims are still trending lower with people applying for first time benefits, as it dropped from 1.90 million in last week's report to 1.54 million this week. Wholesale inflation improved a bit in May, as the Producer Price Index rose 0.4% in May, after it dropped 1.3% in April. It's YoY improved from -1.2% to -0.8%. The Core PPI (excluding food & energy), dropped 0.1% in May; and it's YoY dropped from 0.6% in April to 0.3% in May. Stocks are WAY Down this morning, as the DOW was down by as much as around 1400 points. The comments by the Fed yesterday made them realize the economy isn't going to rebound as quickly as they thought, as the Fed said that rates will remain low for awhile, and they will continue their MBS purchases. They also forecasted a negative GDP this year with it improving next (not enough to make up for 2020); and High Unemployment which will slowly trend lower. They're projecting approximately 10% for Rate of Unemployment this year. Also, there is some concern of a 2nd wave of the coronavirus, as we hit the 2 million mark and 120k in deaths for the US. MBS rallied yesterday (closed +41bps) and above it's 25- and 50 DMA. Currently, it's off its earlier high, but still Up 13bps. Mortgage Rates improved again today. On the note of rates being low for quite awhile from the Fed, Yields plummeted down to it's 50 DMA and sits just under 0.68%.
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