Daily Market Report 10/29/21

 http://MikesDailyMarketReport.com:  Employment Costs went up 1.3% during the 3rd Quarter, while Wages increased the most at 1.5% and benefits at 0.9%.  However, Personal Income dropped 1.0% in September, but Consumer Spending was up 0.6%.  The big data for this week is the PCE, or Personal Consumption Expenditure, which it's Core PCE is the Fed's favorite barometer for Consumer Inflation.  The PCE rose 0.3% in Sept., as it's YoY increased from 4.3% to 4.4%.  The Core PCE (excludes food & energy) rose 0.2%; and it's YoY remained Unchanged at 3.6%.  As we all know that food and energy have been rising quite a bit -we feel it at the grocery store and gas pumps.  Manufacturing revved up in October for the Chicago region, as the Chicago PMI rose to 68.4.  Anything above 50 is considered expansion with this index.  Lastly, Consumer Sentiment rose slightly to 71.7 in October.  Stocks are Mixed, as Investors continue to view Q3 Earnings Reports; and 2 notable companies came in a bit soft (to Wall Street's expectations), which were Amazon and Apple.  Meanwhile, Investors will look to next week's FOMC.  MBS is currently Unchanged after a pretty big dip earlier this morning.  It wasn't affected by the PCE data, but it appeared that money was pulled from both Bond and Equity Markets, which pulled MBS down.  Lenders whom priced early had came out with worse pricing; however, many of them are now re-pricing for the better.  The pricing today for Mortgage Rates should be closely correlated to yesterday's close.  Yields started off higher today, but has subsided a bit too; and is currently sitting at 1.56%.  Both have been struggling against it's 25 DMA.  We'll see if it can break past it.  But next week's FOMC may put a wet blanket on any positive momentum for MBS, as we've seen drops earlier this week when the ECB and BOC spoke about their versions of tapering.  I would recommend locking ahead of the FOMC.

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