Initial Jobless Claims (week ended 1/10/2013)
New Claims – 371,000. Previous was revised to 367,000. 4-week Moving Average – 365,750. Previous revised to 359,000.
Last week was another holiday shortened week. I would regard today’s data as market neutral.
Wholesale Trade (November 2012)
Inventories – Month/Month +0.6%. This is a component of GDP and it tends to be bouncy.
The CFPB today issued its definition of a qualified mortgage (QM) (see: https://www.maureenterris.com/wp-content/uploads/2013/01/201301_cfpb_ability-to-repay-summary-1.pdf). In essence it says that the mortgage industry has to do what it has been doing for the past 2 years rather than what it did during the No Doc and high ratio GSE loan era. One effect will be to give lenders safe-harbor from lawsuits as long as they follow the QM guidelines.