January 16, 2019

Market News

Stocks are gaining in the AM on the heels of earnings beats stemming from major U.S. financial institutions.  Both Bank of America (BAC) and Goldman Sachs (GS) toppled Wall Street estimates, posting strong top line growth.  Investors are currently breathing a sigh of relief, coming off of a 14% drawdown in the financial sector in 2018.  The two behemoths also noted difficulties in fixed-income trading, echoing previous rhetoric from JPMorgan Chase and Citigroup.  The S&P500 is currently trading at 2,614.77, 0.17% higher.

Treasuries are little changed to begin Wednesday’s exchange as investors hit pause before a crucial no-confidence vote takes place in the United Kingdom.  Theresa May’s EU departure vote failed in a grandiose manner yesterday, spurring a vote of no-confidence from the opposing party.  Additionally, retails sales (DEC) and business inventories (NOV) reports have been postponed due to the ongoing U.S. government shutdown.  Since bottoming out on 12/19 at 10.6bps, the U.S. 2/10 spread has widened back to about 18bps as of today.  The U.S. 10-Yr Note is currently trading at 2.7200%, 0.0088 higher.

 

Josh Pappert – VP, Capital Markets
Nations Direct Mortgage