A host of mixed earnings reports and some profit taking are pressuring Stocks lower. Normally, Bonds would respond positively to weakness in equities – however, an inflation warning out of China is limiting the upside gain in Bonds so far this morning.
There were no major economic reports released today. The Mortgage Bankers Association reported that its Market Composite Index, a measure of loan application volume, declined slightly in the latest week as did the refinance index, while the the purchase index increased. The refinance index could begin to rise as home loan rates have eased a bit in the past few weeks.
We are recommending a floating stance, but be aware that sentiment can quickly reverse.