http://MikesDailyMarketReport.com: There's a lot on the Economic Calendar today, so we'll start off with the Philly Fed Index, which measures the Business and Manufacturing sectors around the Philadelphia region. It plummeted from 39.0 in November to 15.4 in December. Anything above 0 is expansion, so it's still ok, but it was a sharp drop! Housing Starts jumped up from 1.52 million seasonally adjusted units in October to 1.679 million in November. Also, Building Permits (future Housing Starts) spiked from 1.653 million in October to 1.712 in November. Yesterday, we saw improvement with the Home Builder Confidence; and this is evidence of their confidence! Jobless Claims rose to 206k last week. Capacity Utilization rose 0.4% to 76.8%; and Industrial Production rose 0.5% in November. Lastly, the IHS Markit PMI released their Services and Manufacturing data for December. Services dropped from 58.0 from their previous reporting to 57.5 in December; and it's Manufacturing dropped from 58.3 to 57.8 in December. For our Headline News, the Bank of England surprised investors today with an announced rate hike from 0.10% to 0.25%; and the ECB followed the lead from our Fed to speed up their taper and finish by March 2022. These Hawkish moves by the European Central Banks has helped MBS and Treasuries, as MBS is currently at it's week high by it's 25 DMA; and Up 27bps. This is enough for an improvement with Mortgage Rates today! Yields have fallen and trying to push thru it's 100 DMA floor; and is sitting just under 1.43%
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