|  Slow Monday, Earnings, and an Idea
by: Dan Stewart
Stocks had a day of rest Monday but the indices were still marginally higher. Retail Sales came in weaker than expected putting a damper on the mood. Then investors rationalized this meant the FED's tapering could be put off longer.
Total volume was light as investors anticipate many earnings releases for the remainder of the week. And Ben will be back in the spotlight as he gives the FED's Humphrey Hawkins testimony before Congress, and Thursday late morning will be the important time...
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 The Bond Market Looks to Have Stabilized – Why That's Important To Dividend Stocks
by: Jim Jubak
There's increasing reason to believe that the Treasury market has stabilized on the fundamentals—until the next panic when the Federal Reserve again begins to talk as if a decision to taper off its program of buying $85 billion a month in Treasuries and mortgage-backed assets is just around the corner.
And if the Treasury market has stabilized, it means that the weakness in dividend stocks (calling it a sell off would be an overstatement) is at an end—for a while—too.
The latest piece of evidence comes from a Wall Street formula called the term premium, which measures the risk of holding long-term bonds by factoring in the market's outlooks on inflation and economic growth.
If you assume that consumer inflation will continue for the rest of 2013 at something like the current low rate–the lowest rate since 2009; and if you assume that U.S. economic growth will stumble ahead for the rest of 2013 by something like 2% or so rather than "racing" ahead at 3%, then the current 10-year Treasury yield of 2.54% is about right"...
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