Market Analysis

Stocks lost steam yesterday afternoon on a downgrading of Greece's debt to junk status by Moody's.  The downgrade was actually not a surprise.  S&P had already downgraded Greece's debt to junk status six weeks ago. Also, recent news out of Europe has actually been better than expected.  Stocks are shrugging off yesterday's news and are currently up with the Dow up approx 70 points to the 10,250 level.  Mortgage Back Securities issued by Fannie Mae and Freddie Mac (MBS) moved into positive territory on yesterday's late weekness in stocks and have held their gains this morning despite strength in the stock market.

In economic news, the June Empire State Manufacturing Survey came in at 19.57 which was slightly lower than the 20.0 expected but better than the 19.11 index value for May.