Stock Market Update

[BRIEFING.COM] The market cap-weighted S&P 500 has not only moved back above its 50-day moving average (5,966), it has also climbed back above the 6,000 level with today's gains.

Currently, it is up 3.2% for the week and 2.2% for the year. It has been a banner week for all the indices, which have been energized by the drop in Treasury yields following the December PPI and CPI reports, which struck just the right tone at the right time.

Headline readings for both reports were better than feared and helped cool down some of the market's inflation angst. The CPI report was the one that moved the needle the most in that respect, but as argued in Briefing.com's The Big Picture column this week, the response was really better than the report itself.

Separately, Treasury yields have been creeping higher in the cash session while stocks have remained in rally mode. The 2-yr note yield is up three basis points to 4.27% (after hitting 4.22% earlier) and the 10-yr note yield is unchanged at 4.61% (after hitting 4.57% earlier).