http://MikesDailyMarketReport.com: Today is the day for the BIG Inflation data! The Personal Consumption Expenditure, or PCE, rose 0.5% in March; and it's YoY rose from 1.6% in February to 2.3% in March. When you exclude the volatility of food and energy, the you receive the Core PCE (or Fed sometimes refers to it as "Real Inflation"), which rose 0.4% while it's YoY rose from 1.4% to 1.8%. The Fed has warned this spike is just transitory, but we'll definitely monitor it and see if it becomes embedded into future costs. Consumer Spending rose 4.2% in March, as the Stimulus checks have helped to bump up this area; and also, Personal Income 21.1% in March. Wage costs have increased Employment costs, which is adding more to our inflation data. Something to continue to monitor! Meanwhile, Manufacturing continues to heat up in Chicago, as the Chicago PMI rose to 72.1 in April. Lastly, Consumer Sentiment jumped up to 88.3 in April. Stocks are Down this morning, despite the good economic data out of the US and good Q1 Corporate Earnings, but the data out of China and Europe had soured the mood for investors. However, MBS is currently Up 6bps and it's starting to look like another possible upward trend, after most of this week being in a downward trend. Based on yesterday's rebound and today's continuation, Lenders will come out with a little better pricing today on their rate sheets. Yields are still sitting atop it's 25 DMA at just under 1.64%.
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