Market Analysis

2011 ended with the US 10 Yr Treasury at a yield of 1.89% vs 3.30% at the end of 2010. Iron Harbor's 0 point mortgage rates finished 2011 at 3.875% for the 30 yr fixed vs 4.875% at the end of 2010 and at 3.25% for the 15 yr fixed vs 4.25% at the end of 2010. The S&P 500 ended 2011 down .04%, the Dow ended up 5.5% and the Nasdaq down 1.8%. Bonds are down today and stocks up on positive manufacturing reports here in the US and also from China and India. Also, construction spending in November increased more than expected.

Below is a recap of this week’s economic calendar:

Tuesday, Jan 03

• December Institute of Supply Management (ISM) Manufacturing Index – came in at 53.9 vs an expected 53.4 and 52.7 in November.
• November Construction Spending – up 1.2% vs expectations for a .5% increase

Wednesday, Jan 04

• November Factory Orders – expected up 2.1% vs down .4% in October

Thursday, Jan 05

• December ADP Private Sector Employment Change – expected increase of 180,000 vs 206,000 increase in November
• Initial Jobless Claims week ended 12/31/11 – expected 375,000 vs 381,000 the prior week
• December Institute of Supply Management Services Sector Index – expected 53.0 vs 52.0 in November

Friday, Jan 06

• December Nonfarm Payrolls – expected up 150,000 with the Private Sector up 170,000 and the Public Sector down 20,000.
• December Unemployment Rate – expected 8.7% vs 8.6% in November