The S&P 500 rebounded today after experiencing its biggest drop in five months yesterday. Consumer staples performed best according to the SPDR’s, while T-Comm and Utilities performed poorly. The VIX settled back down, coming in -3.1% to 13.96. Treasuries yields rallied, with the 10yr note climbing +4bps to 1.72%. The dollar was weak on the day, with the Dollar Index declining -0.76%. This morning investors got a report that indicated housing starts climbed +7% to a 1.04M annual rate, the most since July 2008. The median estimate of 80 economists had called for a 930M annual rate. Record low mortgage rates and the high-demand for rental units should keep residential construction a pillar of the expansion as concern grows that federal spending cuts will slow the world’s largest economy.
Read more →