Capital Markets Update

By Louis S. Barnes                                    Friday, February 13, 2015

Mortgage interest rates increased slightly this past week as new economic data was limited. Of note, the December JOLTS Job Openings Report and the January Treasury Budget were better than expected. Economic data weaker than expected included weekly jobless claims, January Retail Sales, and December Business Inventories. Retail Sales in December and January fell the most in back to back months since 2008. January Import and Export Prices fell, largely driven by declining oil prices. The Treasury auctioned $64 billion in 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met with okay demand. In Europe, Q4 GDP increased 0.3%, slightly more than the 0.2% expected. Markets continue to monitor debt negotiations between Greece and the EU as well as negotiations between Russia and Ukraine regarding a cease fire.

The Dow Jones Industrial Average is currently at 18,007, up over 180 points on the week. The crude oil spot price is currently at $52.86 per barrel, up slightly on the week. The Dollar weakened versus the Euro and Yen on the week.

Next week look toward Wednesday’s Housing Starts, Producer Price Index (PPI), Industrial Production, and FOMC Minutes and Thursday’s Jobless Claims and Philadelphia Fed Survey as potential market moving events. All markets are closed on Monday for Presidents’ Day.