MBA Mortgage Index Prior -12.8%
Forecast -2.75M Prior -5.585M
Not much data for traders to look at today. Yesterday the kids in congress announced a tentative bipartisan budget deal. Tentative is the key word. Look for lots of conservative to start with the bashing today. The deal would set federal spending levels for 2 years and partially replace the sequester. Republicans consider the sequester the only real spending cuts during Obama's presidency and will be hard pressed to acquiesce. That means the Dems need to start complaining. And so it begins. Drama and high rhetoric just in time for the holidays. That said, the wrong words from the right lips could cause some market girations. Holiday trade and thin volumes do big moves make.
Equities stayed under steady pressure all day yesterday. The December S&P closed down -5.90 at 1803.10. Gold and oil saw strong buying. February gold rallied +26.9 to close at 1261.1 and the January WTI contract was up +1.17 to close at 98.51.