Morning Report – sell in May and go away 04/17/13

 

Vital Statistics:

 

 

Last

Change

Percent

S&P Futures 

1546.1

-23

-1.48%

Eurostoxx Index

2550.3

-55.0

-2.1%

Oil (WTI)

87.19

-1.6

-1.68%

LIBOR

0.278

0.001

0.18%

US Dollar Index (DXY)

82.45

0.202

0.25%

10 Year Govt Bond Yield

1.74%

-0.05%

 

Current Coupon Ginnie Mae TBA

106.1

0.3

 

Current Coupon Fannie Mae TBA

104.2

0.2

 

RPX Composite Real Estate Index

190.4

-0.4

 

BankRate 30 Year Fixed Rate Mortgage

3.43

   

 

Stocks are declining again as Bank of America stunk up the joint with an earnings miss. MBA mortgage applications increased Commodities are still coming in. Bonds and MBS are up

 

Bank of America’s miss was largely due to lower mortgage banking income and declining gains on the sale of debt securities. They funded $25 billion in mortgages and home equity loans in Q1, up 11% from Q4 and up 56% from a year ago. In spite of the increase in loans originated, margins fell such that core production revenue was $815 million, down from $928 million a year earlier. Delinquencies fell. Headcount fell by 4,378 during the quarter. Separately, they agreed to a $500 million settlement to end a class action lawsuit over Countrywide MBS.

Is the economy headed for a spring swoon? Indicators are starting to point down, and earnings season has not been the blockbuster that the street was expecting. Another year of “sell in May and go away?”

11 Responses

  1. As anecdotal evidence, my mortgage is through Citibank and they have been pestering me with increasingly expensive marketing materials to re-finance. I have a very low interest HELOC which makes that either complicated or not worth it. But their persistence is impressive.

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  2. I can anecdotally confirm that my stock is taking a hit……………….might be a buying opportunity?

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  3. CNN definitely leaves a lot to be desired in reporting the news. They not only botched the arrest story they actually said it was a “dark skinned male”…………….idiots.

    “I was told they have a breakthrough in the identification of the suspect, and I’m told — and I want to be very careful about this because people get very sensitive when you say these things — I was told by one of these sources who’s a law enforcement official that this was a dark-skinned male,” King reported. “The official used some other words, I’m going to repeat them until we get more information because of the sensitivities. There are some people who will take offense even in saying that.”

    “I’m making a personal judgment — forgive me — and I think it’s the right judgment not to try to inflame tensions,” he added.

    Inflame away Mr. King………………….

    CNN’s Fran Townsend — who was a former Homeland Security Advisor to President George W. Bush — backed up King’s report with her own sources.

    “What was perfectly clear to me, according to this official, an arrest has been made,” Townsend said.

    But within 45 minutes, Townsend was back on the air, explaining that there had been a “misunderstanding.”

    http://www.rawstory.com/rs/2013/04/17/cnn-bungles-report-of-dark-skinned-male-arrested-in-boston-bombing-case/

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    • lms:

      CNN definitely leaves a lot to be desired in reporting the news

      I really don’t know how they get something like this wrong. The only reasonable excuse is that the police are detaining someone but do not want to call it an “arrest” yet. That could produce confusion from a source. But if, as seems to be the case, they aren’t holding anyone in any way at all, it is just pure incompetence on the part of someone.

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    • lms:

      BTW, on the whole “dark-skinned” thing, I’m wondering if anyone is equally inflamed over the fact that CBS reported that the suspect was a white male.

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  4. I would be Scott, I hadn’t heard that or the context of their information. The only reason I know of to mention race is if they’re enlisting the public’s help in identifying a suspect or if it’s pertinent to the crime somehow, but we’re eons away from having that kind of information as far as I know.

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  5. I’m trying to muster some enthusiasm this morning for any sort of debate and or comment and just can’t seem to drum anything up on my end.

    I did want to send thoughts and yes, prayers, to the people in TX who are waking up to such devastation and continued support to the people in Boston. I read somewhere that they’re going to release the photo of at least one suspect in the bombing so I hope that brings results.

    We’re having an emergency meeting here tonight of our now 4 year old activist group of women, and now even a few men, to see if we can determine a way to contribute to the ongoing struggle for a reasonable compromise on background checks for gun sales. I’m not very optimistic but maybe our brainstorming session will yield results.

    Ha, we can’t access our usual meeting room so I’m cranking up the music and cleaning house a couple of days early so we can meet here.

    See y’all later……………………

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