The markets stopped a six day winning streak yesterday. The Dow was down 90 plus points and fell below 10200. Futures are pointing upward this morning. The dollar is weaker and several retailers including JC Penney will be coming out with earnings. The monthly trade deficit report along with the University of Michigan consumer sentiment will also come out this morning.
Bonds continue to be fairly steady. The ten year U.S. Treasury bond is at 3.46%. The yield spread between the two and ten year has tightened slightly to 2.63%. Meanwhile, mortgage rates crossed below 5% on the thirty year yesterday once again. They are trading near their yearly lows.
Markets in the Far East and Europe are both mixed. The Hang Seng in China was up .7%, the NIKKEI in Japan was down .35%, and the Straits Time Index in Singapore was up .04%. In Europe, the FTSE in London was up .21%, the DAX in Germany was up .05%, and the Spanish index was down .08%.
The dollar is down against most major indices. It's down .28% against the Euro, down .62% against the British Pound, and it's down .82% against the Japanese Yen. If the markets are up because of a weak dollar that's an inflationary move. That won't last and frankly it's unhealthy.