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Daily Market Analysis January 5, 2021

January 5th, 2021 10:12 AM by Richard Sardella MLO.100007700/NMLS 233568


Daily Market Analysis

Interest rate markets started unchanged this morning, stock indexes a little better at 8:00 am ET.

Nancy Pelosi won her fourth term as Speaker by a narrow 216 -209 against minority leader Kevin McCarthy. It wasn't unexpected that the vote was tight and won't have any lasting impact in the House, except with now more Republicans, it won't be as easy for Pelosi as the last two terms as Speaker.

Tomorrow the Georgia vote, which party will control the Senate? There won't be a winner announced tomorrow. It may take a week or more to find out as close as the polls are indicating. If either of the two GOP incumbents in Georgia prevails, Republicans will hold 51 seats in the 100-member chamber, giving McConnell control of the legislative agenda. If the two Democratic candidates win, the Senate will be split 50-50, and incoming Vice President Kamala Harris will have the tie-breaking vote that would put the agenda in Democratic leader Chuck Schumer's hands.

On Wednesday, Congress will meet in the House to certify the electoral vote counts, with a few Senators and House members saying they will object and challenge the count. The objections based on voting irregularities won't succeed but will add more drama. There is almost no chance for the challenges in either the Democratic-controlled House or in the Senate, where enough Republicans have acknowledged Biden's victory to oppose objections.

At 9:30 am ET, the DJIA opened +49, NASDAQ +62, S&P +12. 10 yr. at 9:30 am +3.5 bps 0.954%. FNMA 2.0 30 yr. coupon at 9:30 -6 bps from Thursday's close and +3 bps from 9:30 am Thursday morning.

At 9:45 am ET, December's final PMI manufacturing index was thought to be at 56.5, as released, the index increased to 57.1.

At 10:00 am ET Nov construction spending expected +1.0%, as released +0.9% and October revised from 1.3$ to 1.6%.

PRICES @ 10:00 AM ET

10 yr. note: 0.937% +2 bp

5 yr. note: 0.37% +1 bp

2 Yr. note: 0.12% unch

30 yr. bond: 1.67% +2 bp

Libor Rates: 1 mo. 0.143%; 3 mo. 0.238%; 6 mo. 0.257%; 1 yr. 0.341% (12/31/20)

30 yr. FNMA 2.0: @9:30 103.81 -6 bp (+3 bp from 9:30 Thursday)

30 yr. FNMA 2.5: @9:30 105.34 -9 bp (+1 bp from 9:30 Thursday)

30 yr. GNMA 2.5: @9:30 105.45 -9 bp (-2 bp from 9:30 Thursday)

Dollar/Yuan: $6.4600 -$0.0730

Dollar/Yen: 103.07 -0.17 yen

Dollar/Euro: $1.2293 +$0.0078

Dollar Index: 89.57 -0.37

Gold: $1946.30 +$51.20

Crude Oil: $48.55 +$0.03

DJIA: 30,444 -162

NASDAQ: 12,879 -9

S&P 500: 3744 -11

About Richard Sardella

Richard Sardella has been actively managing and providing services in the mortgage industry for over 27 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.

About This Report And Disclosure Information

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.

Posted by Richard Sardella MLO.100007700/NMLS 233568 on January 5th, 2021 10:12 AM

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