Market Watch August 1 2016

Dated: 08/01/2016

Views: 736

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This Week in Review


We are finishing out what has been a busy week with the interest rate markets trading back at lower levels and looking more positive. A somewhat neutral perceived statement out of the Fed made no assessment of the balance of risks, therefore gave no inclination as to whether a rate hike at the September meeting is a strong possibility or not. No mention was made of housing or trade, while no significant changes to the outlook on inflation or labor markets were mentioned. While the Committee remains mindful of ‘global economic and financial developments’, they seemed comfortable saying that ‘near term risks to the economic outlook had diminished’. 

Overall, we think there is still a small possibility of a September hike, although we still believe it’s going to take a stronger improvement in the economic data to fully justify it. Thanks to these comments out of the FED earlier this week, the markets have reacted well and now given us a chance to do better in the short-term. 
As we look at technical charts on the 10yr, we have held support below 1.62% and have now traded back under the low point of our recent range at 1.52%. A close now below ~1.48% points to a test back at 1.42% and improved rates/pricing. Any stall back over ~1.57% and the trend will be neutralized. That said, we will set the new short-term trading range for the 10yr at ~1.48-1.57%. Looking to the week ahead, we have another busy calendar with top tier data points such as ISM Manufacturing, Personal Income/Spending, Factory Orders, Durable Goods, as well as the July Employment report on Friday.


Upcoming Market DataMonday - August 1
PMI Manufacturing Index
ISM Manufacturing Index
Construction Spending
Tuesday - August 2
Motor Vehicle Sales
Personal Income and Outlays
Wednesday - August 3
MBA Mortgage Applications
•  ADP Employment Report
PMI Services Index
ISM Non-Mfg Index
Thursday - August 4
Jobless Claims
Bloomberg Consumer Comfort Index
Factory Orders
Friday - August 5
Employment Situation
International Trade
Featured Blog


6 Steps To Take Before A Kitchen Remodeling Project

PrimeLending, a PlainsCapital Company

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  Jason Kaiman
  Production Manager
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  Office: 515-418-9608
  Cell: 515-205-5244
  10647 Justin Drive
  Urbandale, IA 50322


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