Prior to 8:30 the rate markets were trading a little lower in price with the early stock index trading a little better after yesterday's rally in the equity markets. At 8:30 weekly jobless claims, expected to be down 8K, were up 15K to 576K new unemployment filings. Continuing claims were 6.241 mil, up from 6.239 mil last week after a revision from 6.20 mil. The report confirms more jobs are being lost than were expected recently and sent the stock indexes back to flat and mortgage prices +4/32 at 8:45.

Later this morning at 10:00; July leading economic indicators are expected to be +0.7% and the Philly Fed business index at -10.0 frm -7.5 in July. Still not able to turn the stock market around, although the bond and mortgage markets have performed well in the past few days. Supply will be an issue this morning at 11:00 when Treasury announces next week's three auctions. It isn't a surprise to markets but generally gets traders back to focusing more on it.