Feels Like A Slow Summer Friday

The markets are lower in early trading, but there isn't much in the way of market moving news.  The selling feels more like profit taking ahead of a summer weekend before traders head out to the Hamptons.  We don't hear much about this anymore, do we?

But the markets have had a nice run off their June lows, so some profit taking and consolidation here would be healthy - as we have alluded to in recent missives.

There really is no market moving news in the way of economic data.  There were a few earnings reports out.  The big one was Priceline, whose stock is $50 after reporting a strong quarter.  But it isn't helping anything other than PCLN stock itself.

Asian markets were mostly higher on positive economic data out of China.  Industrial production rose 9.7%, retail sales rose 13.2%, and fixed asset investment jumped 20.1%.  This is helping boost metals and materials stocks that are sensitive to China data.  Separately, the Reserve Bank of Australia lowered its GDP forecast for 2013 by 25 bps to 2.25%.  It expects to reach 3.5% growth by 2015.

Europe's markets trade mixed heading into their closes.  Italy's PM warned that the lack of a rebound in jobs growth poses the biggest risk to the economy.

Commodities are mixed.  Oil prices are up a bit near $105, while gold prices are slightly weaker at $1309.  Silver and copper prices are higher.

The 10-year yield is roughly flat around the 2.59% level.  And the volatility index is up 7% on the selloff in the stock market, reaching the 13.65 level.

Trading comment: We have been saying the market likely needs a rest and should see some consolidation.  That appears to be in the works going by this morning's pullback.  Lately, the markets have tended to bounce midday and recoup some of their early losses.  So it will be interesting to see if we get that usual bounce or if stocks close on their lows for the end of the week.  Either way, we are remaining patient and holding above average cash awaiting a better buying opportunity in stocks.  Have a great weekend--