Market Analysis

Bonds opened down this morning and have deteriorated further as morning trading progressed (lower bond prices translate into higher rates).  The 10 Year US Treasury bond yield is up to 3.65%.  Stocks are up today, with the Dow up over 100 pts to the 10,400 level.  No economic data was released today.  Bonds appear to be responding to the stock market and to technical indicators which have been pointing for several weeks now to higher rates ahead.

Below is a recap of the economic calendar for this week:

Monday, December 21, 2009

Economic Calendar is Vacant

Tuesday, December 22, 2009

Final Estimate Q3 Gross Domestic Product - expected up 2.7% compared to last estimate of a 2.8% increase.

Nov. Existing Home Sales - expected up 2.4% vs last month up 10.1%.

Wednesday, December 23, 2009

Nov. Personal Income, Spending and Core PCE Index  - Income expected up .5% vs last month up .2%.  Spending expected up .7% vs last month up .7%.  Core PCE Index (a measure of inflation) expected up .1% vs last month up .2%.

December Reuter's/Univ of Michigan Consumer Sentiment Index - expected 73.5 vs 73.4 initial estimate.

Nov. New Home Sales - expected up 2.1% vs last month up 6.2%.

Thursday, December 24, 2009

Initial weekly jobless claims for the week ended 12/19 - expected down by 10,000

Nov. Durable Goods Orders - expected up 0.5% vs. last mont down 0.6%.

Friday, December 25, 2009

Xmas - Economic Calendar Vacant