Wednesday, June 3, 2020

Daily Market Report 6/3/20 ADP Employment Report had a positive revision in it's April numbers by approximately 600k, and it's May's numbers came in at a loss of 2.760 million; however, forecasts had it at a loss of 8.663 million.  Markit Services PMI improved their reports to 37.0 in May; also, the ISM Non-Manufacturing Index improved to 45.4.  So, we're seeing some improvement in our Services sector in May, as we saw some improvement in Manufacturing yesterday.  Factory Orders dropped by 13% in April.  Investors are still in a Euphoric mood, as stocks continue at this torrid pace, which flamed a bit higher after seeing the ADP Employment Report.  At some point, they'll need to take their heads out of the clouds and realize that the economy has a ways to go after the pandemic, and now the domestic violence; and to top it off, the increasing tensions with China.  MBS broke below it's double floor of support (25- and 50 DMA) and is Down 17bps this morning.  The Fed is expected to buy about $4.5 Billion in MBS today, so we'll see if we can get back above that floor.  Mortgage Rates were priced a bit worse this morning.  Yields are adding the pressure to MBS, as it broke above it's 50 DMA and is sitting at 0.75%.

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