Market Analysis

Mortgage-backed securities (MBS) deteriorated further during the day yesterday.  This morning they have  continued their negative bias as initial quarterly earnings from large Dow components such as IBM , Coca-Cola and Johnson & Johnson have come in stronger than expected.

Below is a recap of this week's economic calendar which we did not post in yesterday's entry:

Monday, April 19, 2010

• March Leading Indicators - up 1.4% vs expectations for a 1.1% increase. February was also revised up from a .1% increase to a .4% increase.

Tuesday, April 20, 2010

• No Key Economic Reports

Wednesday, April 21, 2010

• No Key Economic Reports

Thursday, April 22, 2010

• Initial Jobless Claims week Ended 4/17/10 - expected down 29,000 from 484,000 to 455,000.
• Continuing Jobless Claims week Ended 4/10/10 - expected down 39,000 from 4.639 million to 4.60 million.
• March Producer Price Index - expected up .5% vs Feb down .6%.  The Core PPI (excluding food and energy) expected up .1% vs up .1% in Feb.
• March Existing Home Sales - expected up 28,000 to an annualized pace of 5.3 million vs a pace of 5.02 million in February.

Friday, April 23, 2010

• March Durable Goods Orders - expected up .2% vs up .9% in Feb.  Excluding Autos expected up .6% vs up 1.4% in Feb.
• March New Home Sales - expected up 17,000 from an annualized pace of 308,000 to a pace of 325,000.