Market Analysis

Yesterday bonds turned negative as profit taking set in.  The general rule of thumb for market watchers is that on days stocks do well bonds do not and visa versa.  The logic behind this rule is that when stocks are weak demand for bonds is higher (as money exits stocks).  This is not always the case though with yesterday providing an example of an exception to the rule.  This morning bonds opened down but have turned around in mid morning trading so that they are now positive.  It is possible we may have an improved rate sheet mid day if bonds continue to improve through the morning.  Stocks opened down but also are reversing some of their losses and moving back towards breakeven. 

In economic news today, 1st Qtr GDP growth was revised down from 3.0% to 2.7%.  The University of Michigan final June Consumer Sentiment index was up to 76.0 vs expectations of a 75.5 reading.