Morning Report - sell in may and go away

Vital Statistics:

	Last	Change	Percent
S&P Futures	1546.1	-23	-1.48%
Eurostoxx Index	2550.3	-55.0	-2.1%
Oil (WTI)	87.19	-1.6	-1.68%
LIBOR	0.278	0.001	0.18%
US Dollar Index (DXY)	82.45	0.202	0.25%
10 Year Govt Bond Yield	1.74%	-0.05%
Current Coupon Ginnie Mae TBA	106.1	0.3
Current Coupon Fannie Mae TBA	104.2	0.2
RPX Composite Real Estate Index	190.4	-0.4
BankRate 30 Year Fixed Rate Mortgage	3.43

Stocks are declining again as Bank of America stunk up the joint with an earnings miss. MBA mortgage applications increased Commodities are still coming in. Bonds and MBS are up

Bank of America's miss was largely due to lower mortgage banking income and declining gains on the sale of debt securities. They funded $25 billion in mortgages and home equity loans in Q1, up 11% from Q4 and up 56% from a year ago. In spite of the increase in loans originated, margins fell such that core production revenue was $815 million, down from $928 million a year earlier. Delinquencies fell. Headcount fell by 4,378 during the quarter. Separately, they agreed to a $500 million settlement to end a class action lawsuit over Countrywide MBS.

Is the economy headed for a spring swoon? Indicators are starting to point down, and earnings season has not been the blockbuster that the street was expecting. Another year of "sell in May and go away?"