Stock Market Update

[BRIEFING.COM] Thus far, the stock market has been caught up in a consolidation trade. That point rings true in the understanding that stock prices are lower today even as Treasury yields have fallen.

Notably, the 10-yr note yield jumped to 4.48% (November 6 post-election high) right after the release of the October PPI and weekly Initial Jobless Claims reports at 8:30 a.m. ET, but just as quickly it ran into resistance as buyers stepped up to avert a move above 4.50%. Having done so, they sent the yield back down to 4.39% and it now sits at 4.40%.

One might have expected the small-cap Russell 2000 to find some support in yields dropping. After all, the Russell 2000 gave back yesterday's 1.0% gain as yields rose and ultimately ended the day down 0.9%. The support, however, has been lacking today.

By and large, the Russell 2000 has experienced a trend-down day and is sitting near its lows for the session (-1.0%) in a controlled burn so to speak following a 7.7% gain in the four sessions after Election Day. If the Russell 2000 can't make it back to positive territory, today would mark its third straight losing session.