Well, investors still seem unsure of whether the government rescue plan will be passed. MBS' opened strong this morning but has given back some of the gains. We are still in a narrow trading range and will likely stay there until the government plan is finalized. Oh, by the way, Washington Mutual became the biggest bank in US history to fail. Not much coverage of this in the news as the government rescue plan is stealing all the light.
We did have 2 economic reports released today but just like the other economic reports released this week, it seems nobody really cares. We had the release of the final GDP numbers for the 2nd quarter. Economists where expecting a growth of 3.4%; however, the number came in at a disappointing 2.8%. We also had the release of consumer sentiment which came in at a reading of 70.3 but economists where expecting 71.0. But again, nobody cares about the scheduled data and all eyes are focused on the government plan.
Unless we get some big announcement, it appears we are stuck in the current trading range. We will get back to you if we get an announcement, but it appears the politics are starting to get in the way.