Daily Market Color July 21, 2016Despite Strong Economic Data, Mixed Earnings Drag Down Markets US stocks are generally lower today while Treasury yields are also falling, as a number of weaker corporate earnings announcements set a negative tone. Southwest Airlines quarterly earnings surprised to the downside, while Intel’s report also showed slowing topline growth and caused the stock to trade down about 4% on the day. In terms of new US data releases, this morning we saw a number of important positive readings released. Existing Home Sales led the way increasing 1.1% for the month (vs. expectations of -0.9%), while the Leading Indicators Index was up 0.3% for the month (vs. expectations of +0.2%), while Initial Jobless Claims was reported 12k better than expected as well. All three major US stock indices are currently down about 0.5%, while Treasury yields are down 2-4 bps across the curve. Swap spreads have jumped wider by about 3 bps on the day, leaving swap rates straddling unchanged. The Yen is firmer against the dollar and other major currencies, while both WTI and Brent crude are both trading down $1.