The Stock Market Is In The Red

The Dow Jones Industrial Average is down 0.6%, trading near 16,390. Earlier this morning, December consumer prices data came in line with expectations, and weekly initial jobless claims figures were lower than expected. Later, the release of the latest gauge of home builder confidence from the National Association of Home Builders shows that sentiment unexpectedly fell over the past month, while the Philadelphia Fed's monthly Business Outlook Survey suggested regional manufacturing conditions have improved faster than expected. While none of the data releases moved stocks much, they have been generally supportive of U.S. Treasuries, which have sold off in the last two sessions. Today, yields across the Treasury curve are falling led lower by the 10-year yield, which is trading 2.84%, 5 basis points below Wednesday's close. 7-year and 30-year notes are also trading about 5 basis points lower today. The dollar is down 0.3% against the yen and flat against the euro.

401(k) Investors May Be Missing the Stock Market's Record Performance

workplace retirement plan participants fielded by State Street Global Advisors reports that a great number of workers are moving their assets to fixed income investments just as the risk of rising interest rates could have a negative effect on bond values. More Headlines New Mortgage Rules Go Back to the Future Nearly 80% of respondents who invested during the market downturn said they are contributing as much -- or more -- now than they did five years ago. Investors have learned an important lesson about the cyclical nature of the markets. More than three-quarters (76%) say their 401(k) is in the same or better shape, than five years ago. But all this good news and optimism is curbed with contrary behavior. While 78% of 401(k) plan participants think that the market will be in the same or better shape in five years than it is today, nearly half (49%) are currently investing more conservatively than they did five years ago. "Participants are afraid of losing their retirement savings and are shying away from making more aggressive allocations," says Fredrik Axsater, senior managing director and global head of defined contribution, SSgA. "This is particularly concerning for younger investors who may not understand how a conservative approach can limit the growth needed to fund retirement." An impressive 79% of investors have maintained or increased their contribution levels since the financial crisis, which could fuel larger returns.