After a rocky start this morning, the DOW just closed at a new record high point for 2009, 2 years to the day after the record all time high was reached prior to the economic collapse. That high was almost 5000 points higher than today. Nevertheless, this is being taken as a positive sign for economic recovery.

With the dollar gaining strength today, commodity prices dropped a bit. Gold backed off its high and closed the day at $1,050 per ounce. Oil closed up though at $72.27 per barrel.

In response to the rise in the value of the dollar, treasury bond yields moved up dramatically. After lows yields 2 days ago at 3.16%, the 10 year bond closed today at 3.38%. Needless to say, the gains, in terms of dropping mortgage rates, were erased, and mortgage rates moved closer to the 5% mark we have been seeing for weeks now.

Next week brings a plethora of earnings reports for big businesses. So far, earnings reports have been coming in better than expected, but next week brings earnings for many of the megabanks. So far, we know that these banks have been charging record high fees on mortgages, record high rates on credit cards, and some pretty outrageous fees on anything they can charge, so earnings are expected to be record high as well. However analysts will be looking hard at those numbers, how much is being shown for potential mortgage defaults, management bonuses, etc.  Of course, they will also be looking at how much some of these banks still owe in TARP repayments.  The outcome of these earnings reports is expected to set the pace for Wall Street next week.

If earnings reports continue with good numbers and good forecasts, we can expect the stock market to continue to rally as well. Mortgage rates might continue the upward movement on the back of the pullback of some federal stimulus dollars that have been supporting Treasury auctions and purchases of Mortgage backed securities.

In other news, Brad Pitt's "Make it Right Foundation" unveiled an amazing floating house prototype for Hurricane Katrina's victims still without safe housing in the Lower 9th Ward in New Orleans. The Make it Right Foundation will be building 150 of these homes, in addition to other homes being built in that area.

Monday is a holiday for most banks, in celebration of Columbus Day.