Just a quick note this morning as markets are on the move. Earlier today, Consumer Spending hit the skids, posting a gain of only .2%. Personal Income fell .1% as well. This release initially gave our market a lift with the 10 year note up 10/32’s and mortgage backs up 2 to 4/32’s. The Dow was also on fire, up nearly 100 points within minutes of the open. Since then, both stocks and fixed income have taken a dip. Stocks have cut their gains in half on the Big Board and the 10 year note is now down on the day.
Mortgage backs have slipped into the red. As I mentioned last week, the next few days could be high volatility, market moving affairs with the mid-term elections, FOMC meeting, and a boat load economic data culminating with the Employment Report on Friday.