Sellers are leaning on the market, giving the fast money types little resistance since the Fed is not in today’s market.
- Weekly Unemployment Claims fell 44K to 610K, well below market estimates for a 655K print.
- Continuing Claims rose once again to a record 6.022 million.
We don’t see this as any huge improvement on the employment front but more of an anomaly due to quarter end and spring break.
- March Housing Starts were also released, down 10.8% at an annual rate of 510,000 units.
- Building Permits fell to a record low as well.
- Regions across the country were mixed with the South down 16.8%, the West off 26.3%, the Northeast rose 6.3%, and the Midwest was up 15.9%. No joy in Mudville in this report.
- The Philly Fed Survey was last on today’s docket, improving 5.6 points to a minus 24.4. Once again an improvement but still contracting.
- For most of the day, mortgage backs had been hanging round unchanged or down 1/32nd. Just in the last hour, sellers have entered and without the Fed in the market buying, the bears are in control.
- Currently, the 10 year note is off 20/32’s (yield 2.84%), mortgage backs off 7/32’s, and stocks up 30 something on the Dow.
Just yesterday, we were talking about a good looking chart that took out and settled below 2.81%. Goes to show you how fickle and dangerous this market is. Turn on a dime and give you two cents change.