bearsThe stock market today sold off dramatically in the morning following weak earnings by a few major companies. The market also sold off over concerns about a slowdown in China.

Economic indicators

Jobless claims remained steady at 326K — again coming in below consensus. The PMI Manufacturing Index also came in mixed – down 1.3 points from December. Existing home sales were below consensus at 4.87.

Overall, the market doesn’t seem to be getting what it needs from company earnings to continue its upward trend. At the same time, there is a lot of money on the sidelines looking for opportunity. It will be interesting to see where the market goes from here — especially with Federal Reserve tapering. Investor sentiment is mixed.

The only real good news is that the 10-year Treasury has not risen dramatically following the tapering announcement. The 10-year Treasury stands at 2.77% today.