December 20th, 2021 9:14 AM by Richard Sardella MLO.100007700/NMLS 233568
Increasing talks of more lockdowns due to omicron continue to roil the equity markets; this morning at 8 am ET the DJIA was down 500 points from Friday’s 532-point fall. Omicron is spreading rapidly, not many deaths, but fear is increasing and with it governments are once again instituting lockdowns just a few days before the holidays begin. The U.K. Health Secretary refusing to rule out stronger measures before Christmas and the Netherlands said Saturday it’s going to a full lockdown until at least Jan. 14. In the US increasing numbers of cities now considering following NY, locking down.
The rapid spread of omicron is shaking Wall Street economic outlooks, the rise in infections has prompted concerns that a new wave is likely to prolong supply-chain disruptions that have elevated inflation. Morgan Stanley strategists recommended that U.S. stock investors stay defensive, and while omicron adds to economic concerns, they’re more focused on risks of supply picking up while consumption fades. Goldman Sachs cut its forecast for U.S. economic growth for the first quarter to 2% from 3% as Oil prices fell amid concerns that the spread of the Omicron variant could hurt global economic growth and crimp oil demand. The chart below is since last Thursday.
At 9:30 am the DJIA opened -465, NASDAQ -214, S&P -55. 10 yr. at 9:30 am 1.39% -2 bp. FNMA 2.5 30 yr. coupon at 9:30 am +8 bps from Friday and -9 bp from 9:30 am Friday.
Leading indicators at 10 am expected +0.8%, as reported +1.1%.
PRICES @ 10:00 AM
10 yr. note: 1.39% -2 bp
5 yr. note: 1.14% -3 bp
2 Yr. note: 0.61% -2 bp
30 yr. bond: 1.83% +1 bp
Libor Rates: 1 mo. 0.102%; 3 mo. 0.212%; 6 mo. 0.312%; 1 yr. 0.529% (12/17/21)
30 yr. FNMA 3.0: @9:30 am 103.69 +3 bp (-11 bp from 9:30 am Friday)
30 yr. FNMA 2.5: @9:30 am 102.25 +8 bp (-9 bp from 9:30 am Friday)
30 yr. GNMA 2.5: @9:30 am 102.41 +2 bp (unch from 9:30 am Friday)
Dollar/Yuan: $6.3755 unch
Dollar/Yen: 113.48 -0.23 yen
Dollar/Euro: $1.1300 +$0.0061
Dollar Index: 96.36 -0.21
Gold: $1795.90 -$9.00
Bitcoin: 46,219 -592
Crude Oil: $67.17 -$3.69
DJIA: 34,779 -586
NASDAQ: 14,970 -199
S&P 500: 4559 -61
Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.
All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.
MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.