Market Wrap 2-13-09 I told you to lock!!! Did you listen? (I hope so)

Fri, Feb 13 - 4:24 PM ET
Market Wrap: Our benchmark 4.5% FNMA bond struggled with a lower volume holiday trading day and lost 28bp to close at $100.62. Traders didn't have much to focus on other than to watch the progress of the 'Financial Stability Plan' in Congress. The $787 billion bill passed the House by a partisan vote of 246 to 183 just after the bond market closed. No Republicans voted for the massive spending measure and the Senate is expected to vote on the bill this evening. The day's only economic report saw consumer confidence eroding in February with a reading of 56.2 vs. a consensus of 61.5. The expectations index, which predicts the direction of consumer spending six months from now, fell to 49.1 from 57.8 in January, the lowest it has been since 1980. However, the current conditions index, which measures consumer perceptions of their financial situation and whether it is a good time to buy big ticket items like cars, edged higher to 67.1 from 66.5. J.P. Morgan said they would temporarily suspend foreclosures for at least three weeks while Citigroup said it would suspend foreclosures until a Treasury plan is finalized to restructure troubled mortgages. The stock market also had a lackluster day with the Dow losing 82 points to close at 7,850. The broader S&P 500 Index lost 8 points to end at 826 while the NASDAQ Composite Index fell 7 points to close at 1,534.

1:39 PM ET - Oil gushes higher to $38/barrel up $4. MBS trolling near lows of the day. Stocks also trading lower after a profit warning from Lloyds of London hits the financials.

12:00 PM ET - JPMorgan halts new mortgage foreclosures. Will not out new mortgages into foreclosure for 3 weeks. Believes 3 weeks adequate for Treasury to announce a new mortgage modification plan. MBS trade back to flat and will close at 2:00pm ET. Stocks lower and will close normal time today at 4:00pm ET.

10:11 AM ET - Consumer Sentiment slightly lower at 56.2 vs estimates of 60.2. MBS trading near session lows. Stocks near unchanged.

8:40 AM ET - Year-to-date the Fed purchases nearly $115B in MBS as reported yesterday. MBS flat, while Stock Futures slightly lower. Oil at $34.72/barrel up 75 cents.