Market Analysis

US Treasuries are improved this morning but mortgages are barely budging.  Stocks took a sharp dive today after a very weak regional manufacturing report from the Philadelphia Fed and on a report by the Wall Street Journal that U.S. federal and state regulators were intensifying their scrutiny of the U.S. arms of Europe's biggest banks, worrying about spillover from Europe's debt crisis into the U.S. banking system.

In economic news, the Philadelphia Fed Index came in down 30.7 vs expectations for a 1.0 reading.  The July Consumer Price Index (CPI) came in much higher than expected with .5% growth for the month vs an expected increase of .2%.  Excluding food and energy, the increase was .2% higher which matched expectations.  July's Leading Indicators came in up .5% vs an expected .2% increase.  Initial Jobless Claims for the week ended 8/13 came in at 408,000 vs expectations for a 400,000 figure.  Existing Home Sales for July came in at an annualized pace of 4.67 million vs expectations for a 4.87 million figure.