Yesterday was tough sledding for the market, which struggled to find its footing. Interest-rate sensitive stocks took it on the chin the most, especially Real Estate.

The 10-year yield surged after a hot CPI and bad auction (more below).

Market breadth was distinctly negative as new lows sprang higher.

FOMC Minutes

Although it’s easy to describe the Federal Open Market Committee (FOMC) minutes as “hawkish,’ it’s because most officials see rate cuts, but timing is uncertain.  Some noted concerns that financial conditions may not be as restrictive as desired, which could put upward pressure on inflation.

The 10-year bond auction was awful by all accounts. It can become a big problem financing our debt if people aren’t buying treasuries at 4.5% yield.

Inflation continues to play a role today with PPI input prices being released this morning.

Today’s Session

The European Central Bank has left rates unchanged, in-line, which is what the Street was hoping for, but it hinted a cut is ahead.

PPI results came calmer than CPI in March, but the story remains similar as service continues to drive gains.

Futures reversed from lows following the PPI print. We have a few Fed speakers today, so let’s see how the market reacts this morning.

• John Williams Speaks 8:45 AM ET
• Susan Collins Speaks 12:00 PM ET
• Raphael Bostic Speaks 1:30 PM ET