http://MikesDailyMarketReport.com: The Markit PMI released both their Manufacturing and Services data for the month of January. Anything above 50 is considered expansion. Manufaturing dropped from 57.7 in December to 55.0 in January; and Services dropped from 57.6 in December to 50.9 in January. We'll need to keep our eyes on this this (especially Services), as both industries dropped and may be trending in this direction. Tomorrow will begin the FOMC, which will be the highlight in focus this week. Also, later this will be the Fed's favorite gauge for inflation (PCE) will be released. The Markets are preparing for the Fed's Announcement this coming Wednesday. Stocks are dropping today, as they prepare, but also, taking some of it's queue from disappointing Q4 Corporate Earnings Reports. MBS is benefitting, they're now Up 30bps. This means that Mortgage Rates improved from Friday's close. Meanwhile, Yields broke below another Technical floor and now testing another (strong) Technical floor. We'll need to watch this, as the last time this Technical floor was challenged (prior week), then it sprung up higher. This could be a prelude, so stay tuned!
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