Dow rebounded all of 47, advancers over advancers better than 3-1 & NAZ was up 90.  The MLP index stayed in the 259s & the REIT index crawled higher but is still below 371.  Junk bond funds were mixed & Treasuries had limited buying which reduced yields (more below).  Oil just slid back a little in the 77s after an early rise (more below) & gold declined 7 to 1999.

AMJ (Alerian MLP Index tracking fund)

Mortgage rates surge higher again, causing homebuyers to pull back

Crude oil futures rose as Israel launched a wave of strikes in Lebanon.  The West Texas Intermediate (WTI) contract for March gained 53¢ to $78.40 a barrel & the Brent contract for Apr was trading at $83.31 a barrel, up 54¢.  The moves came after Israel launched an extensive wave of attacks in Lebanon, Israel Defense Forces spokesperson Daniel Hagari said.  The strikes were in reaction to rockets fired into northern Israel killed 1 person & injured at least 7 more.  WTI & Brent have gained 5.5% & 4.6%, respectively, in the last week as the war between Israel & Hamas in Gaza rages on with no ceasefire in sight.  CIA Director William Burns is in Cairo to facilitate negotiations involving Israel, Hamas, Qatar & Egypt aimed at securing a truce in the fighting in exchange for Hamas releasing hostages.

Oil prices rise as Israel launches strikes in Lebanon

Treasury yields eased as investors digested the latest inflation data & considered what it could mean for interest rates.  The yield on the 10-year Treasury was last nearly 2 basis points lower to 4.3% after climbing by as many as 15 basis points yesterday & the 2-year Treasury  yield was down 5 basis points to 4.61%.  Yesterday, it rose by as many as 19 basis points.  Yields & prices move in opposite directions & 1 basis point equals 0.01%.  Treasury yields had soared yesterday after Jan's consumer price index reading came in hotter than expected.  Prices increased by 0.3% in Jan from Dec & by 3.1% on an annual basis.  The forecast had been expecting prices to rise by 0.2% & 2.9%, respectively.  The data prompted renewed concerns that interest rate cuts would not begin for some time & that there could be fewer rate cuts than expected this year.  Federal Reserve officials have in recent weeks said they are looking to economic data to boost their confidence that inflation is moving back to the 2% target range before making decisions about rate cuts.  Traders were last pricing in just an 8.5% chance of a Mar rate cut according to CME Group's FedWatch tool, down from around 80% a few weeks ago.  With the expectation that rates will stay higher for longer come renewed concerns that elevated interest rates could lead to an economic downturn, a fear that has persisted among investors since the Fed's rate-hiking cycle began in early 2022.

Today's attempt for a rebound in the stock market is feeble.  Rising interest rates are something investors & consumers to not like to see.  On the economic side, the housing market remains sluggish & the auto market is being adversely affected.  After treading sideways for several months, oil could be breaking out to the upside with all the unrest in the MidEast.

Dow Jones Industrials