The bond market is at a ridiculous valuation, whereas the stock valuation is low relative to bonds.

The stock market is going to be like the bond market. It's going to be focused on that Humphrey-Hawkins testimony. I think it's a very nervous market.

It seems the stock market is more tuned to the bond market now than it has been in the past several months. As soon as we got oriented towards the bond market, all this economic data increased in significance.

The stock market looks like it's going to rebound slightly. And I think that's part of it (the bonds being down).

All in all, a much more bond-friendly, stock market-hostile report than expected.

The sell-off in the bond markets, not only here, but in global bonds, is scaring a lot of investors. At the same time, we are seeing a rotation from some of last year's bigger gainers, such as the energy companies, and people are just taking profits on those big names.