Private Jobs Grow.
MBA Mortgage Applications (Week ended 1/3/2014)
– Purchase Index Week/Week -1.0%. Previous weeks were -4.0%, -6.0%, +1.0%, -4.0%, -0.2%, +6.0%, -1.8%, -1.0%, +2.0%, +1.0%, -5.0%, and -1.0%.
– Refinance Index Week/Week +5.0%. Previous weeks were -8.0%, +2.0%, -18.0%, -0.2%, +6.0%, -4.0%, +9.0%, -1.0%, +3.0%, and +3.0%.
– Composite Index Week/Week +2.6%. Previous weeks were -6.3%, -5.5%, +1.0%, -12.8%, -0.3%, -2.3%, -2.8%, +6.4%, -0.6%, +0.3%, and +1.3%.
The data is a comparison of the week including New Year’s Day with the week including Christmas and thus it may not be indicative of anything. Purchase applications which are a leading indicator of sales of new and existing homes have been soft for a month.
ADP Employment Report (December 2013)
– Private Sector Jobs +238,000. Previous was revised from +214,000 to +229,000 making the total gain 253,000. This is an early indicator of what BLS might look like on Friday. I would rate this as “good” not “great.” Lately, expectations have been so low regarding economic growth that what was once “good” is now treated by market participants as “great.” I believe that this myopia is necessary to support the Fed induced equity bubble.