What Snow?

  • January 6, 2014

whatsnowtoonDid it snow by you? Maybe a little bit? We have just experienced a massive snow storm in the Detroit area. However, if you watched the local news you might have thought the world was ending. Were the commentators overreacting? Probably. I think it caused most people to call in for a snow day. Actually, I know this because the market has been particularly quiet today. What? You don’t snow shoe into work?

  • Factory orders rose 1.8% in November, which met economists’ expectations. This suggests strong holiday sales fueled growth in the sector. Mortgage rates decreased slightly, but it didn’t move the market enough to cause originators to re-price. We need a little more to warm us up these days.
  • ISM Non-Manufacturing Index unexpectedly dropped in December; slipping to 53 far from the expected 54.5. This could indicate the economic recovery is not as strong as previous economic data had suggested. This caused investors to question the Fed’s next taper move. Overreacting to one data point? Probably….just like the local newscasters.
  • All eyes are on Janet Yellen today. Her confirmation hearing is scheduled for 5:30. There should be little stopping her from becoming the next chairmen of the Federal Bank. No snow storm will stop that meeting.

Tomorrow is another slow economic news day. However, if Mel Watt finally makes a decision on the LLPA and G-Fee increases he suspended before the holiday we could see the market move… quickly.

By Lindsey Fediuk, Quicken Loans Capital Markets Analyst

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