Morning Report – Big week ahead 4/28/14

Posted on April 28, 2014 by Brent Nyitray

Vital Statistics:

Last Change Percent
S&P Futures 1863.2 3.1 0.17%
Eurostoxx Index 3161.8 14.4 0.46%
Oil (WTI) 101.1 0.5 0.47%
LIBOR 0.225 -0.002 -0.77%
US Dollar Index (DXY) 79.58 -0.174 -0.22%
10 Year Govt Bond Yield 2.67% 0.01%
Current Coupon Ginnie Mae TBA 105.6 0.0
Current Coupon Fannie Mae TBA 104.6 0.0
BankRate 30 Year Fixed Rate Mortgage 4.25

 

Markets are up small this morning after Pfizer released a $100 billion bear hug for AstraZeneca Plc. Bonds and MBS are flat.
Big week coming up. The action begins Wednesday, with the FOMC decision and the advance estimate of Q1 GDP. On Thursday, we have a couple of big reports with the ISM Manufacturing report as well as personal income / consumption. Finally, on Friday we get the jobs report. So, there is a lot of stuff this week that could move bonds around. Float at your own risk.
The Street estimate for Q1 GDP is +1.2%, a significant slow down from the +2.6% pace for the fourth quarter. Clearly the Street is baking in some caution given the lousy weather in January and February. Housing continues to punch below its weight, so that is another issue.
The FOMC meeting will not have a press conference or any revisions to the economic forecast, so it should be a non-event. Expect to see another $10 billion reduction in asset purchases.
Pending Home Sales rose 3.2% month over month but fell 7.4% on a year-over-year basis. The jump was mainly a catch-up after a rough start to the year. The NAR is expecting existing home sales to hit 4.9 million in 2014, less than the 5.1 million pace in 2013. Given the inventory shortage, they expect median prices to increase 6% – 7% this year.

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10 Responses

  1. Michigoose, on April 28, 2014 at 9:06 am said:

    Frist.

    That is all.

    Like

    Reply
  2. I'm Now Kevin's Biatch, on April 28, 2014 at 10:17 am said:

    Heh. Just don’t call it statism.

    Like

    Reply
  3. Michigoose, on April 28, 2014 at 10:50 am said:

    Meh. Maryland is true blue, and when Gov. Perry came here we just basically laughed at him. And our governor plays better guitar.

    Like

    Reply
  4. I'm Now Kevin's Biatch, on April 28, 2014 at 1:06 pm said:

    This is why the party is dead to me.

    http://thehill.com/blogs/ballot-box/presidential-races/204441-paul-difficult-to-turn-the-clock-back-on-o-care

    I’m now going to start advocating for revolution.

    I am and will continue to be seditious.

    Like

    Reply
  6. quarterback, on April 28, 2014 at 1:43 pm said:

    Obama State dept spokesdope cites Think Progress and Dailykos as references for statements.

    http://twitchy.com/2014/04/28/the-onion-next-state-departments-jen-psaki-ridiculed-for-citing-daily-kos-think-progress-as-reference-sources/

    We are doomed. Barring Troll’s revolution.

    Like

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  7. I'm Now Kevin's Biatch, on April 28, 2014 at 2:05 pm said:

    Mr evolution Fever, catch it!

    Like

    Reply
  8. novahockey, on April 28, 2014 at 2:49 pm said:

    well, can’t get the email verification to work at the PL, not going to spend any more time on it. probably for the best anyway.

    Like

    Reply
  9. quarterback, on April 28, 2014 at 4:37 pm said:

    Haven’t been able to load comments at PL in months, except on my phone, and that’s a pita. It’s a complete joke and intellectual toxic waste dump, except for a few good righties. Mindnumbrobot is awesome.

    Like

    Reply
  10. Michigoose, on April 28, 2014 at 10:24 pm said:

    can’t get the email verification to work at the PL

    You aren’t the only one. There are even a couple of folks with paid subscriptions who have had problems. It took me a few days before it took; if you find that you miss it you can always try again later once the hamsters have recovered.

    Like

    Reply

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