Market Moment

The Baker Market Moment is your way to stay on top of the latest in economic events and market-moving news. Whether it’s the latest news from the Fed or the latest number from Wall Street, the Baker Market Moment is where you can find it.

Inflation Report Brings Few Surprises

The Bureau of Economic Analysis released its April report for its Personal Consumption Expenditures Index this morning and the results were pretty close to expectations. For the month of April, headline PCE rose 0.6% as expected with the year-over-year pace rising to 3.6% from 2.4% and that slightly missed estimates

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More Hits Than Misses in Early Data

A rash of data has greeted a Treasury market that was already experiencing an early morning sell-off. The second estimate of Q1 GDP from the Bureau of Economic Analysis was the day’s most eagerly awaited news and it came in at an unchanged 6.4%. Also in the report, we learned

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Bonds Drifting on Light Data Day

Treasury bond prices are little changed in early morning with some longer-dated issues slipping very slightly. Today’s only data-point was released earlier by the Mortgage Bankers Association when it announced that new Mortgage Applications fell 4.2% last week after managing a 1.2% increase the week before. Applications for purchases were

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Bonds Gaining Ground in Early Trading

As investors await a flurry of housing numbers this morning, Treasury prices continue to edge higher. Comments from Fed officials aimed at calming inflation jitters appear to be having the desired effect. The Long Bond has rallied to around 2.29% while the Ten-Year’s yield has slipped to 1.59%. The Two-Year

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Bonds Getting Off to a Good Start

Prices for Treasury bonds are moving up slightly in this morning’s early trading. Today’s only data-point has already been announced by the Chicago Fed with a report on its National Activity Index for April and the news was not encouraging. The Bank’s broad measure of economic activity was already expected

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Treasury Prices Edging Up

The day is beginning on a quiet note as Treasury prices quietly move higher along with equity futures. Yields have dipped modestly with the Long Bond trading around 2.32% and the Ten-Year bringing 1.62%. The Two-Year is unchanged at 15 basis points while the rest of the yield curve is

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Initial Jobless Claims Fall to New Pandemic Low

The Bureau of Labor Statistics just reported that Initial Jobless Claims for the week ending May 15th totaled 444k and that was less than the 450k that was estimated and also less than the prior week’s slightly revised 478k. While this may be a new low for the pandemic era,

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Treasuries and Equities Drift Lower

Renewed inflation fears are being blamed for this morning’s weakness in both credit and equity markets. Today’s only data point has already been released by the Mortgage Bankers Association in its weekly report for new Mortgage Applications. For the week ending May 14th, those Applications rose another 1.2% after rising

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Housing Starts Plunged in April

This morning’s report from the Census Bureau revealed that Housing Starts fell 9.5% in April while March’s 19.4% spike was revised to a 19.8% spike. Analysts were only expecting a 2% decline for last month. Building Permits also missed estimates with a rise of 0.3% that was only half of

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Markets Leaking Oil to Start the Week

Treasuries and equities are both starting the week weakly as market prices slip in early trading. This morning’s only data point so far was the announcement by the New York Fed that its Empire Manufacturing Index fell to 24.3 this month from 26.3. A greater slip to 23.9 was expected

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Retail Sales Weaker Than Expected

This morning’s report from the Census Bureau revealed that there was no growth in April’s Retail Sales despite estimates looking for a 1% rise. March’s 9.8% growth was revised to 10.7%. Without Autos, Sales fell 0.8% against an expected rise of 0.6% while March’s 8.4% growth was revised to 9%.

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Producer Prices Rise as Jobless Claims Fall

The Bureau of Labor Statistics announced this morning that its Producer Price Index rose 0.6% last month when an increase of half that rate was expected. Year-over-year, headline PPI rose to 6.2% from 4.2% against estimates of just 5.8%. Without food and energy, core PPI notched a monthly rise of

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Inflation’s Jump in April

The Bureau of Labor Statistics reported this morning that its Consumer Price Index rose 0.8% last month and that was considerably higher than the 0.2% bump that analysts expected. Year-over-year, along with the effects of a changing base, that helped push the twelve-month pace to 4.2% in the face of

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Treasury Market Seeks Direction

With no economic statistics scheduled for release today, Treasury prices are mixed. After Friday’s wild ride before and after the release of April’s Jobs Report, Treasuries are a bit weaker in the long-end but are showing a little strength in the short-end. Thirty-Year bonds are off about 3/8 of a

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Ouch!

The Bureau of Labor Statistics just released its Employment Situation Report for April and the results weren’t pretty. Non-Farm Payrolls grew 266k last month falling far short of the estimated growth of 1M. The Unemployment Rate was expected to fall to 5.8% from 6%, but instead rose to 6.1%. That

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