(As of 7:34 am pacific)
Europe is on the back burner. Economic reports have not been good, but the
lack of Europe news provides enough momentum to push the market higher. Jobless claims were up and higher than
expected. The CPI was actually down .3%,
but mostly due to the drop in gas prices.
Interest rates are up slightly.
Gold is down slightly, but mostly flat, like oil and other
commodities. Longer term mortgage rates
continue downward as short term rates are slightly up, probably ‘Operation
Twist’ coming into play again. The Fed
has done a remarkable job with ‘Operation Twist’, bringing 30 year mortgage
rates under 3.75%. The operation is set
to end at the end of June so, barring an extension, long term mortgage rates
should head up. With Europe out of the
news, my sense is that investors consider the US markets to be undervalued.
