The Market Bull – May 22, 2019
The major averages closed with small losses on little real news though the Federal Open Market Committee or FOMC minutes were subject to their usual dissection.
The Mortgage Bankers Association reports that its mortgage activity index advanced 2.4% last week as refi’s jumped 8.3% while purchase apps fell 2%. The 30-year contract rate for a jumbo loan was unchanged at 4.24%. Mortgage activity continues to improve following its nadir set at the end of last year as interest rates peaked.
The latest Federal Open Market Committee or FOMC meeting notes were subject to their usual dissection. The recent dip in inflation is considered transitory, the odds of that are 50/50 and depends on the geopolitical situation. Expectations on the economy are that it will continue to improve requiring higher rates. Good luck with this, as the data continues to soften. Another odd highlight was the note that economic uncertainty was receding, do these people watch the news? Lastly a patient stance would be taken with future monetary adjustments. Personally, I think the Fed is running a material risk of losing control of the situation and as demonstrated repeatedly in the past, fails to recognize dangerous asset bubbles of its own creation.
Standard and Poors 500 Index closed at: 2,856.27 down 8.09
NASDAQ finished the day: 7,750.84 down 34.88
Gold ended trading at: $1,273.30 down $.90