January 30, 2018
Tuesday's economic news is positive led by solid strength in Case-Shiller home prices which are rising at a 6.4 percent yearly rate. Strong home prices are part of the story behind consumer confidence which is holding right at 17-year highs in a report that includes a surge in stock market bullishness. And there's new bullishness among institutional investors who had been, in State Street's prior reports, more wary of stocks.
Stocks fell back sharply to extend yesterday's dip with the Dow losing a sizable 1.4 percent to 26,076 to trim its year-to-date gain to a still prodigious 5.5 percent. Teasuries were mixed with the 2-year yield holding steady at 2.12 percent but demand for the 10-year did continue to ease with this yield up 3 basis points to 2.72 percent. Weakness in the dollar resumed with the dollar index down 0.2 percent to 89.17. Oil fell back more than $1 to $64.50 while gold held steady near $1,345.