We are inclined to believe that the rise in U.S. small- capitalization stocks has gone beyond the point warranted by valuations, and have experienced a minor mania.

A modest pullback in warranted.

Gains in U.S. stocks and a halt in the yen's rise are both supportive for the market,

Gains in U.S. stocks and a halt in the yen's rise are both supportive for the market.

You have lower oil prices, you have a healthy employment situation and you have a consumer that is still willing to do a little bit of spending. That all adds up to a positive for the economy.

Even though retail sales may have spurred somewhat higher long-term rates, they're still not much different from where they were a few weeks ago.