Reply #17: Lunchtime check-in 12:17

[54anickel]

Dow 10,455.16 -60.40 (-0.57%)
Nasdaq 2,048.12 -17.36 (-0.84%)
S&P 500 1,137.82 -7.38 (-0.64%)
30-yr Bond 5.135% +0.076

12:00PM: Stocks opened higher in response to very strong economic data and good earnings reports...March Retail Sales surged 1.8%, and the February increase was revised upward to a 1.0% gain from an originally reported 0.7% increase...and it wasn't due to the volatile auto category...excluding autos, sales were up 1.7%...this has economists raising first quarter GDP growth forecasts to about 5% from 4%...it also has the bond market hopping...the 10-year note is down 23/32 to yield 4.32%...expectations of Fed tightening have increased, with a 1/4% hike in short-term rates expected in August...
as a result of changing rate expectations, interest-sensitive stocks are getting slammed...banks, utilities, mortgage, and consumer financials stocks are all down sharply...the dollar is also higher as a result, which has gold tumbling...in this mix of macro news, good earnings reports from the likes of Johnson & Johnson (JNJ 51.90 +0.70) and Merrill Lynch (MER 58.60 -1.13) are having little impact...the weakness is widespread, as decliners lead advancers by a wide margin...volume is light...NYSE Adv/Dec 713/2463, Nasdaq Adv/Dec 829/2188

11:30AM: Bond market stabilizes with the 10-year note down 20/32 to yield 4.31%...utility and other interest sensitive stocks are getting hit hard...the banking stock index (BKX 99.30 -1.39) is down 1.4%, but that's not as bad as many other sectors...consumer financial services are down 2.37% and savings banks are down 1.97%....NYSE Adv/Dec 733/2410, Nasdaq Adv/Dec 821/2146