Stock Market Update

[BRIEFING.COM] There has been some seesaw action in the stock market today, and it appears that the foray below 6,000 for the market cap-weighted S&P 500 has resonated with dip buyers.

The major indices have spent the past few hours or so working their way back toward session highs that were established soon after the opening bell. The Vanguard Mega-Cap Growth ETF (MGK) had been down as much as 1.2%, but is now flat. That rebound effort has been an important source of support for the major indices in their comeback effort.

The small-cap stocks have also found a bid. The Russell 2000 had been down 1.2% earlier following Friday's 2.9% decline, but is now flat for the session.

Separately, the $69 bln 2-yr note auction was well received. The sale drew a high yield of 4.169%, which stopped through the when-issued yield by 1.1 basis points. The bid-to-cover ratio (2.56x) was a bit below average (67.6%), but indirect takedown (85.5% vs 67.6% average) was well above average, reflecting strong international interest. The U.S. Treasury will follow this sale with a $70 bln 5-yr note offering tomorrow.