Richmond Fed business index falls

In a report out today the Richmond Fed business index fell significantly.  This is the third are Fed report this year to show a sharp contraction (NY and Philly both showed a contraction).  The report missed on on all estimates and this trend is somewhat alarming.  The index fell from a positive “5” to a negative “12” .  Mortgage rates and bond markets did not budge and it appears the stock market may close positive for the day.  Most markets have had an “optimistic” view of the economy lately as the job picture has improved along with the belief that the budget/debt/deficit/spending issues in Washington will get resolved soon. California mortgage rates remain steady for the day after the MLK holiday.