Stock futures are spurting higher following the 8:30 release of economic data. The figures on retail sales and import prices are stronger than expected. Retail sales jump 1.4%, biggest gain in 16 months, U.S. May import prices rise 0.9%. Briefly, the yield on the 10 year treasury jumped to 5.31%, but have since pulled back. So S&P futures are shooting higher as a rebound takes shape this morning indicating that even a whiff of a more stable 10 year treasury is able to give the stock market some room to rally. But staying power is what's important - whether initial gains after the open can be sustained in this higher rate environment. The usual suspects will need to be watched closely: everything from bond yields to VIX futures and the VIX (interesting that the VIX futures somewhat lagged the actual VIX yesterday) to breadth and put to call ratios, etc.
The recent surge in bond yields has had a noticeable impact on mortgage activity. US mortgage applications rose last week - MBA. It looks as if some folks rushed in to lock themselves in as rates moved higher.
Gold futures extend losses, as dollar rises
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