Market commentary

Caterpillar, 3M, and UPS were among companies reporting strong second quarter earnings this morning, and the National Assn. of Realtors reported existing home sales fell only 5.3% in June. Many analysts had forecast a much steeper decline in home sales, so with the smaller than expected decline in housing and the strong earnings reports, U.S. stocks are rallying. Treasuries are giving back most of Wednesday afternoon’s gains, as are mortgage bonds.