http://MikesDailyMarketReport.com: The Markit PMI released it's Manufacturing and Services data today. The Manufacturing dropped from 63.4 in July to 61.2 in August; and Services dropped from 59.9 in July to 55.2 in August. Both slowdowns being attributed to the rise of COVID cases. Existing Home Sales got a bump with an increase in supply over the summer, as it went up from 5.87 million seasonally adjusted annual units in June to 5.99 million in July. Stocks are Up today, as Investors shrug off the Markit data, which only feeds into the Bad News is Good News. Based on the Notes from the last FOMC, there was concern that the Fed may taper sooner than expected; however, based on more recent comments (notably by Fed Member Kaplan), then there may be some sentiment to hold on talks to later this year (continued stimulus). Some good news today, as the FDA announced it's Approval for Pfizer and Bio N Tech vaccines. They're hoping this news will bring more unvaccinated to get vaccinated; and stocks for many services industry (such as movie theaters) are up. Meanwhile, MBS started the morning lower, but has since risen; and is currently Up about 8bps. This isn't quite enough to positively affect prices, but if it continues with this trajectory, then it can. So, Mortgage Rates will be Unchanged from Friday's close. Yields are pushing up against it's 25 DMA and just under 1.26%.
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