Daily Market Report November 9

Only a few minor economic news releases today. The NFIB Small Business Index, which is the survey of the confidence of the Small Businesses, increased a little bit, but still stuck in recessionary levels. The Wholesale Inventories were Up a little bit too, but again, still low overall. Job Openings did drop a little bit too. On the technical side of the news, China is upset with the Fed for their QE2 announcement, as they feel the US is now flooding the Market with too much liquidity and vow to cap their Market. Ireland is in the news because of concerns of them being able to repay their debt, and Portugal is under the Microscope, as well. The Stock Market is Down, as well as, the Bond Market (more dramatically). The Traders are taking a step back to digest everything that happened last week (the elections, QE2) and what it really means. The Stock Market is currently at its highest levels not seen in awhile. The Bond Market appears to be over-correcting itself, as it opened with a huge gap of approximately 50 bps and is currently down another 28 bps. This means that Mortgage Rates could be worsened as much as .25% to .5% with just today's numbers (depending on the Lenders pricing). I don't anticipate it lasting for too long, as the news is not something that alarming, which it will generate this much movement. It may take a few days, but I believe you'll see it correcting itself. Check out the chart and notice what happens with large opening gaps. Have a great day!

Category:

News & Politics

Tags:

• economic news
• stock market
• bond market
• wholesale inventories
• mortgage rates
• china
• fed
• small business index
• job openings
• qe2