http://MikesDailyMarketReport.com: Retail Sales rose 0.9% in April, after a sharp higher revision to March (from 0.5% to 1.4%). This, on the surface looks very good, but Rick Santelli made a great point about this data. The point is related to the data not being adjusted for inflation. The reported data may be over-inflated due to the spike in inflation. Even Walmart disappointed with their Earnings Reports that was just released yesterday. More retailers will be releasing their data this week. In other Economic data, Industrial Production rose 1.1% in April. The NAHB Home Builders Index, which measures confidence with Home Builders, dropped dramatically in May, as it went from 77 in April to 69 in May. We'll need to monitor this, as it may indicate that Home Builders may not continue to build homes, or simply dropoff. Lastly, Business Inventories rose 2.0% in March. Stocks are Up this morning on the Retail Sales data, as Investors are feeling like inflation isn't affecting the Consumers (I stated previously my thoughts). Also, it seems like China may lighten up with their Technology Companies, as they tightened up with them last year. This is of course amidst a slowing economic market. Analysts, like JPM Chase, revised their thoughts on buying into their stocks. MBS is Down approximately 45bps, after touching it's 25 DMA yesterday. This has led to ratesheets today with a little bit of worse pricing. Also, Yields jumped back above it's 25 DMA and sitting just under 2.97%. Fed Chair Jerome Powell will be speaking a little later this morning; and a few Fed Members will follow. Depending upon their statements, it could have a major impact with the Markets. So, stay tuned!
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