Market Analysis

Both bonds and stocks are flat this morning.  There appears to be some apprehension in the mortgage market that the run up on bond prices which has brought rates down may have run out of steam.

The economic calendar for this week is recapped below:

Monday, May 24, 2010

• April Existing Home Sales - expected up to 5.65 million annualized pace, the actual # came in at 5.77 million, slightly higher than expectations.

Tuesday, May 25, 2010

• May Conference Board Consumer Confidence Index  - expected value of 58.3 vs 57.9 in April

Wednesday, May 26, 2010

• April Durable Goods Orders - expected up 1.4% vs April down .3%.  Not including the transportation component, expected up .7% vs April up 3.5%.
• April New Home Sales - expected up to annualized pace of 425,000 vs 411,000 in April.

Thursday, May 27, 2010

• Initial Jobless Claims week ended 5/22/10 - expected down to 455,000 from 471,000 the prior week.
• Continuing Jobless Claims week ended 5/15/10 - expected down to 4.6 million from 4.625 million the prior week.

Friday, May 28, 2010

• April Personal Income, Spending and PCE Index - Income expected up .4% from up.3% in March, Spending expected up .3% from up .6% in March and PCE index expected up .1% from .1% increase in March.
• May Chicago PMI (purchasing manager's index) - expected 60.0 reading vs 63.8 in April
• Final May Univ of Michigan Conumer Sentiment Index - expected 73.2 vs 73.3 preliminary estimate.