After managing to hang onto Wednesday’s big stock rally, traders are taking a low-key approach Thursday morning. Dow futures are up 20 points in pre-opening trading. Oddly, Wall Street gurus and traders are not embracing this rally. The higher stocks go, the more talk of the need to be cautious.ContentMiddleAd

There is no need to talk of caution in the bond market, however, as bonds have exhibited nothing but caution. Although the bond bull contingent remains the largest, it has lost some members. There have been no major sellers in the market that would indicate the bulls are capitulating, but bonds aren’t attracting new buyers, either, at the higher rates. Bond prices were lower to start the day.

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News From Washington

Congress is saying it will vote today to pass a one-month spending bill to avoid a government shutdown on Friday, but the vote is too close to call. If Congress is having this much trouble passing a spending bill, what will happen when it’s time to pass a debt ceiling bill?

Dwight Johnston is the chief economist of the California and Nevada Credit Union Leagues and president of Dwight Johnston Economics. He is the author of a popular commentary site and is a frequent speaker at credit union board planning sessions and industry conferences.