Euro Woes

MARKET WRAP: Stock markets plunged today and pushed Bond prices considerably higher in early trading. But as the session unfolded Mortgage Bonds hit fresh session highs, then they reversed course and headed lower. The 3.5% coupon rose 19bp to 101.66, just above where it closed yesterday. Today’s higher than expected Initial Claims and a plunge in the Philly Fed gave a big boost to the Bond markets but the rally soon fizzled out. Stocks plunged today on the aforementioned news. That coupled with Euro bank woes was the recipe for the sell-off. The Dow lost 419.63 to 10,990.58, the S&P 500 dropped 53.24 to 1,140.65 while the Nasdaq plunged 131.05 to settle at 2,380.43. Oil finished the turbulent session at $82.38/barrel down $5.20 as global recession fears could crimp demand. There are no economic reports tomorrow.

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