Existing home sales showed solid strength in April, raising chances that the worst of the housing slump is behind us. But it wasn't enough to lift the stock market which gave back much of Tuesday's gains as the S&P 500 fell 1.9 percent to 893.
The likely bankruptcy of General Motors didn't help market, but the risk, and along with it massive new layoffs, really has never sparked a flight to safety. The dollar remains near lows at just above 80 on the dollar index. Gold also has seen little benefit, continuing to hold steady at $950.
Judging by gains in oil, now over $63, the economic outlook is strong. Money moved out of the safety of Treasuries where the yield on the 5-year note rose 10 basis points to 2.40 percent. The ever building supply of Treasuries is weighing on the market though today's 5-year note auction did go very well.