http://MikesDailyMarketReport.com: Personal Income rost by 1.1% in July; whereas, Consumer Spending rose only 0.3%. The Fed's favorite inflation gauge was released today, which is the Personal Consumption Expenditure (PCE). It rose 0.4% in July and it's YoY rose from 4.0% in June to 4.2% in July. When you exclude food and energy, then you will have the Core PCE, or the Fed calls it Real Inflation (this is what the Fed watches more closely). The Core PCE rose by 0.3% in July and it's YoY remained Unchanged at 3.6% (June's data was revised from 3.5% to 3.6%). The Consumer Sentiment showed a HUGE dropoff in August! The July data of 81.2 dropped to 70.3 for it's final number in August (it's mid-month was at 70.2). However, the main catalyst for the week was this morning's speech by Fed Chair Powell at the Jackson Hole Symposium, which he addressed their desire to taper this year, however, was non-committal to when that may begin; as it's assumed they will want to review more data, especially with the uptick in Corona cases before they make any further moves. Stocks were good with his speech; as were MBS, which are currently Up 23bps. Mortgage Rates improved to almost the same level as Monday's pricing. It's back up above both it's 100- and 50 DMA. Yields are coming off yesterday's highs and currently sit below it's 50 DMA at 1.32%.
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