Daily Market Update 6/20/13

Rates have moved sharply higher since the release of yesterday’s Fed statement.  If the economy performs as expected, the Fed plans to taper its bond purchases later this year and conclude the program by the middle of next year.  The statement noted that downside risks to the economy have diminished.  Any investors who were looking for signs that tapering would be farther away were very disappointed.  Investors have continued to sell both stocks and bonds this morning.  In other economic news, weekly Jobless Claims jumped to 354,000, well above expectations.  Existing Home Sales rose to 5.18 million annual units, beating forecast.  Leading Indicators increased by 0.1%, a bit less than expected.  The Philly Fed Index, a survey of manufacturers in the region, surged to 12.5.  Readings above zero indicate expansion in the manufacturing sector.  No other key economic data will be released today.

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