Retail Sales Stronger Than Expected

The market had a nice bounce yesterday, although it came on very low volume. This morning, despite a strong retail sales report, the market is giving back some of yesterday's gains.

April retail sales rose +0.5%, excluding autos, vs. expectations of +0.2%. This is a pretty good sign for the consumer, and doesn't even include the rebate checks that are coming out. And Wal-Mart (WMT) topped earnings expectations, so it isn't just the luxury items that seeing buying.

Bernanke spoke this morning, and didn't really have much new to say. But he did say that the credit markets are not yet back to normal, and that the Fed is ready to increase its Term Auction Facilities as needed.

Asian markets were mostly higher overnight, except for China following the earthquake. The dollar is up vs. the Yen and the Euro. And oil is slightly higher again, back near $125. Bond yields are higher also, with the 10-year up to 3.85%.

The NAR metropolitan home sales report came out this am, which shows strength and weakness by region. I'll be back later with a follow-up of that report.