The nuclear test spat between India and Pakistan has given the market jitters, particularly among stocks of huge multinationals with business interests there, e.g., Coke, high techs. The strength of the US dollar and renewed slump in Southeast Asia didn't help, either. Volatility on Wednesday and Thursday was extreme, but buyers once again used the pullbacks to put excess cash to work, particularly in big OTCs. The market's still wobbly.
Consumer spending continues strong, helped by home sales activity.
There are still no signs of inflation anywhere.