Subdued, muted, and composed are a few of the words that describe the markets this week. With a few potholes along the way…being a New Yorker potholes are just part of our daily world but hey, that’s not stopping us!
Yesterday's Super Thursday lacked any explosions. The UK election was mostly ignored by our markets although a hung Parliament is not sustainable for long. Yet there will be Fireworks to follow. The ECB did not change rates but no longer said they would consider lowering them. Inflation both here and abroad are slacking and will make it tough to raise rates in Europe- thus here is different story with Ms. Yellen's finger already on the trigger. And lastly Mr. Comey's testimony revealed no smoking guns…yet.
The Dow set a record high, again. While bank stocks led the way. Nasdaq got clobbered today dropping by nearly 2% at the close on tech stocks. The 10-year bond closed at 2.20% up it is a .05% on the week, but doing well considering the Fed meeting next week. Oil stocks fell for a third week, next as well? The Dollar danced around, but had no substantial gains other than the British Pound which tumbled post-election.
It was ground hog day again in the mortgage world. A few articles stated that rates had reached 2017 lows, but certainly not so. Lower yes, but no records yet! Next week we go back to data watching with lots of data topped off with the Fed announcement on Wednesday. The odds are on a hike, probably not so prudent, but the odds are 95% that they will!