And you’d better start swimming or you’ll sink like a stone,
For the times they are a changing.
- Bob Dylan
Mortgage Bonds are down this morning in what appears to be some profit taking by the market. Stocks on a whole seem to have rebounded from yesterday’s major dip, but that recovery has been largely tempered by some negative financial data released today.
Job Growth below Expectations
But at least it’s still growth! The ADP job report, which is based on a view of roughly 12% of the private-sector payrolls, shows a growth of only 13,000 jobs in the last month. The ADP data is often skewed, and we will see much more accurate numbers on Friday, when the June Jobs Report is due. I wont even tell you what economists expect this report to show, but I will tell you that it is expected that 250,000 census jobs were lost in June, so any positive underlying number will be swallowed up by that.
Homebuyer Tax Credit Extension Revived Again
This controversial Tax Credit Extension has been pulled from the edge of death so often that its starting to resemble Dick Cheney. Seriously though, the House tacked this on to an Unemployment Extension bill and pushed it through quickly yesterday. The senate already has a version of this bill in the works, its expected that they will vote on it today in time for the President to sign it into law.
Europe Surprises Everyone with some Good News!
The ECB released data early this morning that shows less reliance on it’s lending programs than originally expected, a much-needed boost to confidence in EU liquidity that got investors attention. The overall gain in stocks this morning is mostly attributed to this piece of news, which basically shows that the EU members, as a whole, had more stable legs under them than was originally expected.
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Geoff Boyd – PrimeLending – Clackamas, OR