Stocks began the day with a huge rally, but then the effects of realism set in with a few more disappointing, but not unexpected reports coming out. Currently, most sectors are still showing positive and the market is still up slightly but investors are once again reminded that most indicators are now signalling recession. The one huge report out shows that Gross Domestic Product figures point to the largest reduction since 1980. Consumer spending appeared to be the biggest driver of this figure, with a 3+% decrease in the 3rd Quarter. Going hand in hand with this report is that disposable income is down 8.7%, the largest quarterly drop in over 60 years. Other not so encouraging news is that while weekly unemployment figures did not increase, they did miss the expected figure which was a bit lower than actual numbers, and overall unemployment is sitting at 6.1%. This is another sign of recession and AMEX won't help this situation as they report they will be reducing their workforce by 7000.

The 10 yr Bond is following the same pattern as stocks are today. After a big run up to over 3.96%, it has settled back to the 3.91 range--still up from yesterday's close. Rates are reflecting this yield curve as well, with 30 year fixed rates now running near 6.375%, well above last weeks rates.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR TRANSACTION