Market Reflections 8/11/2009

Talk is centered on whether or not there's too much enthusiasm in the stock market. But even the most cautious aren't calling for too big a retracement given that the economy is now stabilizing. Profit taking pushed the S&P 500 down 1.3 percent in quiet trading to 994.35. Selling was concentrated in financials on talk that defaults remain a risk and are a growing risk for commercial real estate. Demand was very strong for the Treasury's 3-year note auction, good news ahead of 10-year and 30-year auctions tomorrow and Thursday. The 3-year yield ended 6 basis points lower at 1.72 percent. The dollar index ended little changed at 79.15.