Morning Report – Here’s Janet! 11/14/13

Vital Statistics:

Last Change Percent
S&P Futures 1782.4 3.7 0.21%
Eurostoxx Index 3041.1 20.0 0.66%
Oil (WTI) 93.35 -0.5 -0.56%
LIBOR 0.238 -0.002 -0.89%
US Dollar Index (DXY) 81.08 0.156 0.19%
10 Year Govt Bond Yield 2.71% 0.01%
Current Coupon Ginnie Mae TBA 105.4 0.4
Current Coupon Fannie Mae TBA 104.5 0.1
RPX Composite Real Estate Index 200.7 -0.2
BankRate 30 Year Fixed Rate Mortgage 4.38
Markets are higher this morning on no real news. Bonds and MBS are flattish.
Wal-Mart cut its profit forecast due to the weaker economy at the lower end of the income spectrum and increased competition from dollar stores.
Finally, some economic data, although nothing market-moving. Initial Jobless Claims came in at 339k, a touch higher than the 330k forecast. Productivity was 1.9% vs Street expectaions of 2.2% and unit labor costs fell .6%. Later on today, we will get the Bloomberg Consumer Comfort index. Philly Fed President Charles Plosser will be speaking momentarily – he is a hawk so bonds could sell off on his comments.
Janet Yellen is scheduled to appear in front of the Senate Banking Committee today. Here are her prepared remarks. First thing off the bat, no mention of QE or tapering. For the most part nothing in the statement suggests any sort of change in direction from the Bernanke Fed. She intends to continue with the policy of keeping the markets informed of the Fed’s thinking, and believes that the dual mandate requires her to boost inflation if it is too low. She is committed to making sure the too big to fail banks are regulated, while at the same time she wants to lower the regulatory burden on small community banks. These sort of hearings are more or less dog and pony shows for the benefit of politicians, not public consumption. They don’t ask questions, they make statements. I don’t expect anything market-moving to come out of this, but just be aware. While there are a few people who want to use her nomination as leverage to advance other items, she should be confirmed easily.
Abby Joseph Cohen loves stocks right here..
Bidding wars on the West Coast are beginning to wane as inventory builds. Expect to see this reflected in the home price indices going forward. This could be a welcome development for the mortgage industry as professionals exit and real buyers (the ones who will need a mortgage) enter.

40 Responses

  1. Dammit, Janet!

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  2. That was the Street’s reaction to her nomination, that’s for sure…

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  3. Should the Fed be audited? I mentioned (yesterday?) that Cruz was going to join Paul in holding Yeller’s nomination because he wants the Fed audited. I’ll be honest and admit I have no idea what value it would provide. My gut instinct is that anything resisting an audit should be audited. What’s the counter argument?

    And…Third!

    Suck on that why dontcha!

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  4. Auditing the Fed has all kinds of good consequences, such as reporting how much monetary stimulus is directed to foreign banks. It’s a good way to keep the Fed from going off the reservation since otherwise they are pretty much unaccountable.

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  5. “Obama to Offer Health Care Fix to Keep Plans, Democrat Says
    By ASHLEY PARKER
    Published: November 14, 2013 ”

    http://www.nytimes.com/2013/11/15/us/politics/obama-to-offer-health-care-fix-to-keep-plans-democrat-says.html?pagewanted=all

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  6. Heh.

    @Will_Antonin: While Obama is issuing fiats: HOW ABOUT YOU BRING BACK #FIREFLY?

    All you Star Trek reboot haters probably hated this show too!

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  7. I loved firefly.

    I don’t care, I’m still free
    You can’t take the sky from me.

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  8. Well, maybe they shouldn’t have been complicit in this.

    @JohnJHarwood: Insurance source: WH fix places “onus on us even tho they know we can’t” effectively extend cancelled policies given rates/logistics probs

    They to can COI.

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  9. 2+2= I love the Star Trek Reboot!

    #1984wasright!

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  10. “Heh.

    @Will_Antonin: While Obama is issuing fiats: HOW ABOUT YOU BRING BACK #FIREFLY?

    All you Star Trek reboot haters probably hated this show too!”

    Nope. Hate the reboot, loved Firefly. Those are actually linked sentiments. Imagine how bad a Firefly reboot with Justin Timberlake as the lead would be?

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  11. Troll – Merkley’s argument means that Democrats aren’t competent to vote on complex legislation as they can’t understand it.

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  12. If you’re libertarian you have to like firefly. it’s in the bylaws.

    so when does the exchange fix become the new doc fix?

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  13. Through no fault of his own. It must of been from that damn war and that son of a bitch Johnson.

    @philipaklein: Obama says his healthcare pledge “Ended up not being accurate”

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  14. I don’t even know what “firefly” is. But evidently I come rushing in to defend jnc on PL all the time. I’m on ignore now with Dezzie, which has crushed me. Crushed me.

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  15. That’ll be like money in the camps. I’d jump on that.

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  16. You want me to spend $18.39 to establish nerd cred? I don’t think so!

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  17. No, it’s so you can trade it for cigarettes and booze in the camps.

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  18. Real nerds would have just bittorrented the entire series years and years ago. Here are some Brownshirt cosplayers from 2006:

    Balticon 12

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  19. Yeah, like the camps will have high-speed.

    It’s dial-up only in the camps!

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  20. Interesting.

    @DawnRiseth: Good grief. Obama knows insurers price modeled on this law a year ago. They can’t change earning model now they have shareholders.

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  21. “Michigoose, on November 14, 2013 at 1:32 pm said:

    You want me to spend $18.39 to establish nerd cred? I don’t think so!”

    No, you should spend it because it’s one of the best TV series ever. I believe you will like the male lead.

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  22. “Michigoose, on November 14, 2013 at 12:57 pm said:

    I don’t even know what “firefly” is. But evidently I come rushing in to defend jnc on PL all the time. I’m on ignore now with Dezzie, which has crushed me. Crushed me.”

    “The right seeks converts and the left seeks traitors.” This moral superiority that is peculiar to the left is a great impediment to momentum.”

    http://www.newstatesman.com/politics/2013/10/russell-brand-on-revolution

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  23. As it turns out, I can get “Firefly” on Netflix.

    And I continue to find it hilarious that I’m taken for a RWNJ on PL. Just call me “Young Grasshopper.”

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  24. NoVA and Paul–

    I’ve got a friend coming in to town next week and she’ll be staying in Arlington near the NSF HQ. Any suggestions on where to take her to dinner? Remember, this is an academician expense account, not a lobbyist one! 🙂

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  25. National Science Foundation? Do you want to stay in Arlington? or come into DC?

    Arlington: http://www.tallularestaurant.com/
    it’s been awhile, but I like http://www.iotaclubandcafe.com/. live music too.
    good steak, not steakhouse prices. http://www.raysthesteaks.com/ i dont’ recall if they take reservations or not.

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  26. Yes, National Science Foundation. I, myself, would prefer to come back into the district, but I may be outvoted.

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  27. Tallulah looks yummy! I’ll run it up the flag pole. Thanks–

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  28. i added a steak house, cause, turf and turf

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  29. “And I continue to find it hilarious that I’m taken for a RWNJ on PL.”

    That’s what happens if you believe that budgets have something to do with math as opposed to just being about “the people”.

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  30. Arlington used to have lots of great Vietnamese restaurants but they’ve all moved to Falls Church.

    Ray’s The Steaks always gets great reviews but I’ve only been to the one in Silver Springs.

    Edit: Corked by the guy who should know.

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  31. Yello — do you remember Queen Bee? great Vietnamese food right down from the clarendon ballroom. dinner, desert and a beer for $20. couldn’t beat it.

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    • Queen Bee was great but it closed years and years ago. There was another one right near it that was good but it also got gentrified away. We might try Rice Paper in Eden Center this weekend. We refuse to go to Four Sisters on the principle that it is too trendy for Asian people to go to. It’s the faux foodie hipster choice.

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  32. A steak house! You know the way to a girl’s heart.

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  33. jnc: Butbutbutbutbut. . . . it’s all about the children.

    Isn’t it??

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  34. I think the Arlington Ray’s The Seaks doesn’t take reservations, at least it didn’t used to. The owner Michael Landrum is a bit eccentric and enforces a 90 minute limit on tables. We went to Hell Burger once for Father’s Day but I think that moves locations a lot and is currently closed.

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  35. was it that long ago? I used to live in clarendon when i was in my mid-20s. … oh.

    the no reservations thing just bug me. I don’t have the time. maybe i’ll do the lobbyist thing and hire a line stander.

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  36. Ray’s (in Arlington) takes reservations. On for dinner Tuesday–thanks for the recommendations!

    Like

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