Stocks are down slightly as media outlets digest the first round of the exploratory impeachment hearings, headlines will more than likely dictate markets for the remainder of the week as fundamentals will work their way to the back page. Pending home sales rebounded in August a sign that the housing industry is faring better than predicted earlier in the year. The recent uptick in rates has new applications down about 10% from the highs seen over the past couple of months. New home sales data showed an increase upon release yesterday but also pointed to a higher entry level price which may affect new home owners.
Bond Markets have remained quiet throughout the morning hearings involving the president with the 10 year down slightly on the day. Consumer sentiment fell sharply as headlines continue to point out that many economic leaders are forecasting a recession within the next year. Liquidity seems to be a main focus of the Fed right now with POMO operations continuing daily and most being over-subscribed. Many feel this may be one of the major catalysts leading to the restart of QE in the coming months. Protests continue to drag on in Hong Kong and the White House has announced it is unlikely to extend the temporary waivers that were provided to Huawei.