Stocks continue to chop around in negative territory. The general trend has been downward, though.
Pressure continues to keep Treasuries lower, too. The benchmark 10-year Note is down 12 ticks. Its slide was extended by weaker-than-expected demand for the Notes in the latest auction, which produced a bid-to-cover ratio of 2.6. That was right at the average for the year. However, the indirect bidding of 34.9% was the lightest it has been since June. The results do not bode too well for the sale of 30-year Bonds tomorrow.
Since when does the day's news move the market? Maybe it will sell off at the end of the day, but the way these things are sometimes played, they could very well rally it into the end of the day to make it look like "the market" doesn't care or isn't very worried, and then take it down tomorrow or a couple of days later.
Also, think of the possible spin that could be put on this: nobody is buying bonds, which means investors aren't in a hurry to pull out of the stock market, so the miserable failure of the bond auction hurts the dollar but rallies the stock market. Who the hell knows how it will be played? But one thing we should all know by now is that bad news doesn't necessarily mean the market is going down. Eventually, yes, but not necessarily the same day or even the same week.
The FED can control short rates, but the market will dictate long rates. Follow the bond market and it will tell you what's going on with the economy... Stocks are just telling you there's a ton of liquidity, and THAT might be at the end of its rope.