Stocks remained largely unchanged as the major indices fluctuated between gains and losses. While stocks showed little directional bias, bonds remained well bid with the 10 year yield falling to 3.04% which indicates concerns about growth in the economy and deflationary fears. The 10 year is getting close to its lows back in the fall of 2008 of around 2.65% which has to provide some caution to equity bulls. Gold was the standout today falling from an intraday high of $1260 back to $1239. Some have suggested the rising dollar as the reason for gold's decline but that would go against the way gold has been trading recently (as a safe haven currency/hedge against the Euro). On the forex side of things markets remained largely neutral with the dollar increasing against most counterparts. The euro was down on market concerns regarding Spanish banks and Romanian sovereign debt problems.
We also had some economic indicators which were largely positive with personal income up 0.4% and personal spending up 0.2% indicating that consumers are still spending money and for at least now ignoring the European debt crisis.
Big economic news tomorrow with the Case-Shiller index and Consumer Confidence. Both of these should be large market movers as they provide a look at the state of housing and consumers willingness to spend money.
Black Swan Insights