November 2009 - MND NewsWire

In line with weak global markets, US equities are looking to open lower this morning. Two hours before the bell sounds S&P 500 futures are down 8.2 points at 1,086 and the Dow is off 68 points to 10,259. Following the trend, commodity prices are also weaker. WTI Crude oil is trading 52 cents lower at $77.53 per barrel and Spot Gold is down $4.95 to $1139.65.

The Mortgage Bankers Association reported that delinquency rates during the third quarter hit all time highs. Prime mortgages and FHA mortgages appear to be driving the increases while subprime loans problems may be leveling off.

New 13-month peaks early in the week and now . . .hesitation. Ninety minutes before the opening bell, S&P 500 futures are off 10 points to 1,098 and Dow futures are 66 points lower at 10,338. With equities taking a dip, other assets considered risky are following suit. WTI Crude is trading 70 cents lower at $78.88 per barrel and Spot Gold is $10.87 lower at $1134.63. As President Obama warns of accumulating too much debt, he is also tapping into unused portions of the TARP funds, sending mixed messages to the market. Meanwhile, investors are concerned about the US housing market, trade relations with China, and the broad decline of the US dollar.

In this week's release, which reports on loan application activity for the week ending November 13, 2009, new loan application fell 2.5%, even as the 30 year fixed-rate mortgage fell 0.7% to 4.83. The refinance index decreased 1.4% and the purchase index fell 4.7%. This is the sixth consecutive decline for the purchase index and is the lowest read since November 1997.

Attorney General Eric Holder today announced the formation of an interagency task force to investigate and prosecute financial fraud. The group will look at both past activities surrounding the recent mortgage and credit crises but will attempt to spot unfolding trends that could harm individuals and institutions.

National credit agency TransUnion reported today that, while mortgage delinquency rates continue to rise and have reached record levels, the rate of increase has now declined in each of the last three quarters.

Federal Reserve Chairman Ben Bernanke today spoke at the Economic Club of New York. The topic of his speech was the Outlook for the Economy and Policy. While nothing groundbreaking was said, I do want to recap his comments and point out a few observations.

With the Dow climbing for six consecutive days and breaking fresh 13-month highs, the 0.91% sell-off yesterday was prompted more by timely profit-taking rather than plunging sentiment. After a one-day break, investors are already back in buy-mode this morning, as all three indexes are looking modestly higher. The question will be whether that confidence can last the morning. The trade balance is a never-too-pretty reminder of the nation’s growing debt, and consumer confidence is unlikely to surge with the unemployment rate hitting double-digits for the first time in 26 years just two weeks ago