Another BIG data day moves the markets

In yet another busy data day, mortgage bonds seem to be looking for the exits as most of the reported data comes in better than expected or as anticipated.

The big mortgage bond sell off began?by a much better than expected jobless claims number for July.

• The NAHB Housing Market Index rises to 59 in August from the 57 recorded in July and better than the 57 expected – the best level in nearly eight years.
  
• The Philly Fed falls to 9.3 in August from the July reading of 19.8 and just below the 10.0 expected.
  
• Industrial Production remained unchanged for the month of July, 0.3% less than expectations. Capacity Utilization was reported at 77.6%, slightly lower than expectations of 77.9%.
  
• As of 9:30am Mortgage bonds have lost 60bps and broken beneath lows we haven’t seen in over a month after the big bond-selloff.
  
• As of 9:30am the Dow, Nasdaq and S&P are all down almost 1% at the start of the trading day
  
• The yield on the 10-Yr T Note rises to 2.80%.
  
• Stocks also falling after retail giant Wal-Mart said same store sales slipped and the company also cut its annual profit outlook.
  
• CPI was reported up 0.2% for the month of July, which was in line with expectations. Core CPI, which strips out food & energy was also reported up 0.2%, in line with expectations.
  
• Initial Jobless Claims were reported at 320k, this is 10k less than expectations of 330k, and is the lowest level since October 2007.
  
• The Empire State Mfg. Survey was reported today at 8.24, less than expectations of 10.0.
  
• Oil prices continue to rise on the tensions in the Mideast now at nearly $108/barrel to the highest level since mid-July. Higher oil prices are no good for Stocks as it weighs on consumer spending.
  

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