Next week promises to be uneventful
With the Christmas holiday coming in the middle of the week, next week promises to be relatively dull. Many senior traders will take the entire week off, leaving only junior traders with orders not to take a position unless they absolutely have to. The past year has undoubtedly been terrible for bond desks and bond funds, so we won’t see traders swinging for the fences this late in the year.
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Economic data this week
Monday, December 23
Tuesday, December 24
Wednesday, December 25
Thursday, December 26
Friday, December 27
Earnings reports this week
No real-estate related earnings this week
Impact on mortgage REITs
Mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), and MFA Financial (MFA) are highly interest rate–sensitive. We already know where the Fed stands with tapering, so there really isn’t much more for the REITs to focus on. Originators will be relieved to hear that Mel Watt plans to delay the price increases for Fannie Mae loans. This is a positive for originators after a positively melancholy 2013.
Impact on homebuilders
Next week contains a lot of data that will be of concern to the builders. Personal Consumption and Consumer Confidence is a big deal to builders like Lennar (LEN) and Standard Pacific (SPF). We will also get some macroeconomic data with the Chicago Fed National Activity Index and Durable Goods.