Morning Report – Big Week Ahead 9/29/14

Stocks are lower this morning on the demonstrations in Hong Kong. Bonds and MBS are up.

This is a big week data-wise. We will get the ISM report, construction spending, Case-Shiller, and then the jobs report on Friday. Given that bonds again seem to be driven by overseas events, I think the jobs report will probably be a non-event for the bond market unless it is exceptionally strong or exceptionally weak.

Pending Home Sales fell 1% in August after rising 3.2% in July. The West was up 2.6%, while the rest of the US was down.

Bill Gross is out at PIMCO and has joined Janus Capital. This follows record outflows at the flagship Total Return Fund, which Gross ran. PIMCO anticipates another $10 billion will leave on the news.

Personal Incomes rose .3% in August, while Personal spending rose .5%. The PCE Core rate (the inflation measure the Fed prefers to use) rose 1.5% year-over-year, below their 2% target rate.

Freddie Mac’s Chief Economist told the New England Mortgage Banking Conference that 2015 could be the best year for home sales since 2007. They are forecasting mortgage rates to be around 5% by the end of 2015.

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