Mel's Blog

Stocks are trading lower this morning on news that Dow component, General Electric, reported worse than expected earnings and also said their future earnings would be lower than previously thought.  GE stated the primary reason for the shortfall was due to the credit crunch and a slowing economy.  The profit shortfall took the Stock market by surprise and as a result, Stocks moved lower and Mortgage Bonds improved higher.

The University of Michigan Consumer Sentiment Index for April was reported at 63.2, which was far below expectations and represented a 26-yr low for the index.  This very ugly reading suggests that consumers may be hesitant to make large purchases, which does not bode well for future economic prospects. 

Mortgage Bonds continue to bounce around in a very wide trading range.  I will carefully float for now.