Stocks Up After Bad Data

Following the release of worse-than-expected retail sales data this morning and subsequent weakness in stocks, the market is rallying headed into the afternoon.

The S&P 500 is 0.2% higher, trading at 1823, while the yield on the 10-year U.S. Treasury note is lower as well at 2.75%, and the dollar is down against the euro and the yen.

Equity indices across Europe are mixed. The German DAX, the French CAC 40, and the Spanish IBEX 35 are higher, while the London FTSE 100 and the Italian FTSE MIB are holding on to earlier losses. Overnight, the Japanese Nikkei dropped 1.8%, and the Hong Kong Hang Seng fell 0.5%.

The charts below show the moves in various markets. Across the top from left to right are the S&P 500 index, the dollar-yen exchange rate, and the euro-dollar exchange rate. Across the bottom are gold futures, 10-year U.S. Treasury note futures, and December 2016 eurodollar futures.

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