Stock Market Update

[BRIEFING.COM] The major indices are registering modest gains, but have pulled back from higher levels with longer-dated Treasury yields also reversing (as in moving higher).

The 10-yr note yield traded down to 4.26% after this morning's PCE data, but that move was short lived. Notably, the reversal followed the June Consumer Sentiment survey, which showed a downward revision for both year-ahead and longer-run inflation expectations.

Despite the favorable revision, participants perhaps didn't like the stickiness factor of each coming in at 3.0%. In any case, the 10-yr note yield moved abruptly to 4.34% and is now at 4.33%. The 2-yr note yield for its part went from 4.66% to 4.72% and is now at 4.71%.

The S&P 500 has slipped back below the 5,500 level.