News You Can Use from Gary Moore

Weekend Market Update

Oct. 9-10, 2010

Stocks and bonds both rallied this week, breaking the pattern of divergence, as bad news and how the Fed might respond was satisfying enough for both markets.

The Dow Jones Industrial Average closed above 11,000 on Friday for its first close above that mark since May 3. September's jobs report released Friday showed a loss of 95,000 jobs, which was in line with expectations, and which to some market watchers confirmed Wall Street's belief that more Fed easing is ahead at its Nov. 3 Federal Open Market Committee meeting.

The Fed's "QE"---quantitative easing in Fed-speak---in an attempt to goose the economy is likely to take the form of the Fed buying U.S. debt (Treasury issues), and that increased demand would be expected to lower already rock-bottom interest rates and make borrowing attractive to American consumers and businesses.

The 10-year Treasury note closed at a yield of 2.31%

Mortgage interest rates touched extreme lows last visited in August.

Some of the lift to stocks could also be attributed to upcoming earnings reports, which are expected to show an estimated earnings growth rate for the S&P 500 of 24% in the third quarter, according to Thomson Reuters analyst John Butters. Corporations reporting earnings next week include General Electric, Intel, J.P. Morgan and Google.

As the economy continues to plod forward, corporations are realizing gains in productivity that increase earnings growth.

Another motivation for money moving into stocks are the ultra-low yields on other, less volatile instruments, such as CDs, money markets and bonds.

Call me with any questions about the market or to pre-approve you for a purchase loan or to run a free analysis of what a refinance---with cash out or not---would mean for your financial bottom line. Gary Moore 615-579-8658.

30-Year Conventional Fixed

4.0% $200,000-$417,000

15-Year Conventional Fixed

3.5% $200,000-$417,000


30-Year FHA-100% VA

4.0% $100,000-$393,300


30-Year Jumbo Fixed

5.25% $417,001-$900,000

(Interest-only available-Call me)

THDA Great Start

4.8% $100,000-$393,300

4% of sales price Gift

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...by Gary Moore

Mortgage Planner, First Community Mortgage

...a subsidiary of First Community Bank

Cell: 615-579-8658 Toll-free fax: 866-321-6513

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"A single idea, if it is right, saves us the labor of infinity of experiences." - Jacques Maritain

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