The only trend I can find right now out in the markets is a lot of uncertainty. On the one hand the stock market is near all time highs and is back up off its recent pullback some. We get some economic reports that seem to indicate the economy is doing better. But then we get other reports calling that into question. And the yields on long term bonds are are incredibly low levels. Are those bonds trying to signal anything?
Here is a CNBC article that touches on this topic. Notice how while hope abounds that the high stock market is indicating an improving economy, this article takes a different view of that. Below are some quotes and then a concluding comment.
"Producer price inflation data and industrial production are among the reports expected Friday, as traders attempt to decipher whether the bond market or the stock market is sending the right signal."
"Stocks were on track after Thursday's gains for the best weekly performance since July 3. The bond market, meanwhile, plumbed yields at the bottom of the recent range after a $16 billion 30-year bond auction drew strong demand at low yields last seen at auction more than a year ago.""Gina Martin Adams, institutional equity strategist at Wells Fargo Securities, said the stock market's move higher has to do with the Fed. The market, in recent sessions, has spun bad economic reports in a positive way on the logic that a weaker economy could mean the Fed would be slower to remove stimulus or raise rates. Weekly jobless claims were slightly disappointing Thursday, rising back above 300,000."