Yesterday, in a quiet day from an economic data/news perspective, equity markets pulled back. The weakness seemed to be triggered by Treasury yields, which began moving higher again after consolidating for a couple of weeks post the jobs report. Interest rate sensitive areas of the market led to the downside with small and mid-cap indices trading down >1% while REITs were down >2%. Mega-cap tech stocks outperformed showing some “defensive” qualities. The economic calendar is light again today, however today is one of the first really busy days of earnings and getting through those reports feels like drinking from a fire hose. Broadly speaking the numbers seem solid with a couple of blowups mixed in. However, the stock reactions definitely lean to the weak side of things which is reflective over stock performance heading in. The S&P 500 opened modestly lower retesting yesterday’s low before bouncing modestly however, small and mid-cap indices have continued to be under pressure. As we head to print, the S&P 500 is down 11pts to 5,843 (-0.2%), the Dow is down 8pts to 42,923 (-0.0%), while the Russell 2k is down 8pts to 2,231 (-0.4%). Treasury yields were a touch lower ahead of the open but have been moved slightly higher over the last couple hours.