Thursday, April 21, 2022

Daily Market Report 4/21/22  Manufacturing in the Philadelphia region dipped in April, as the Philly Fed Index dropped from 27.4 in March to 17.6 in April.  The number for April is still pretty good, but the steep decline is something to monitor.  Meanwhile, Initial Jobless Claims dropped by 2k from last week's report to 184k; while Continuing Claims declined, as well.  Lastly, the Leading Indicator rose 0.3% in March.  Investors are listening to Fed Members today, including Jerome Powell sitting on a panel with the ECB's Lagarde.  The takeaway from their messages are hawkish, which include a preamble of what to expect at the May FOMC, which is a 0.5% rate hike and Balance Sheet reduction.  The idea of front loading the rate hikes to reduce inflation seems to be on most Fed Members' minds, so we could potentially see 0.75% in the near term.  They want to hit the 2-2.5% level, which is considered the "Neutral" level sooner than later; and determine later how much above it they'll need to go after further review of the front loaded ratehikes.  Investors are also reviewing Q1 Earnings Reports, which seem to be coming in Mixed.  Tesla made the headlines today on a positive note.  Stocks are Down today; as well as, MBS!  MBS kept dropping throughout the day with some seesaw activity inbetween.  It's currently Down 66bps, as Mortgage Rates worsen.  This is why we've warned about being careful of these headfakes, as we still search for a bottom of our MBS Chart.  It's still trending lower.  Meanwhile, Yields were as high as 2.95%, but recently slid down to 2.91%.

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Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

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