(as of 7:10 AM PST)
An early turnaround has most markets positive, after an initial opening that pointed to a day of profit taking. Economic data was mostly negative, led by housing starts, which fell by 16% in January, well below analyst expectations. The producer price index (PPI) came in at a low rate that shows inflation continues to be held in check. Gold is down slightly after a big surge over the past week, while oil is close to unchanged. The US dollar index is slightly positive. Most market indexes have made an amazing comeback after the disappointment of January. International markets are mixed. Data points to the fact that China is becoming a seller of US Treasury bonds, having redeemed almost 50 billion, from its record holdings of 1.25 trillion dollars. There is some concern about who will pick up the slack of US Treasury purchases with the Federal Reserve reducing its asset purchases, along with its biggest buyer China. Interest rates continue to hold well in check despite this note.
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