Stock Market Update

[BRIEFING.COM] The S&P 500 is down 0.1% for the day, yet that small loss feels like a big gain considering the market had been down 1.1% at the start of today's session.

True to form, there was some quick intervention to buy the dip that helped foster a speedy recovery. That intervention was mediated by the Treasury market and its recovery from overnight selling that saw the 10-yr note yield go as high as 4.56% and the 30-yr bond yield move as high as 5.04%. They both sit at 4.47% and 4.94% now, respectively.

The initial thrust in yields was tied to the Moody's downgrade of the U.S. credit rating, and it helped contribute to the 30-yr fixed mortgage rate climbing above 7.00%. That is not the direction homebuilders want to see the mortgage rate go. Accordingly, the homebuilding group is exhibiting relative weakness in today's trade, evidenced by a 1.0% decline in the iShares U.S. Home Construction ETF (ITB).