Mortgage rates, which are linked to the yield on 10-year Treasuries, have shot higher. Freddie Mac said 30-year mortgage rates surged to 4.46% this week, the biggest weekly jump in 26 years.
Gold sell-off:Gold prices have been under pressure this month as investors worry about the Fed's tapering plans. Prices are down 13% this month and briefly dipped below $1,200 for the first time since mid-August 2010.
Gold bugs getting whacked
The precious metal has fallen out of favor with investors as inflation expectations have come down significantly. Traders said tight credit in China and weak jewelery demand in India are also weighing on gold prices.
Economy still growing: The latest data suggest the U.S. economy is on track for modest growth.
The Labor Department said Initial claims for unemployment benefits fell 9,000 to 346,000 in the week ended June 22.
Separately, Americans' personal income rose 0.5% in May, while spending increased 0.3%, according to the Commerce Department.
What's moving: ConAgra Foods(CAG) shares rose after the company said it swung to a profit in is fiscal fourth quarter. KB Home(KBH) said losses narrowed in the second quarter.
Paycheck Inc.(PAYX), a provider of back office services, said profits were flat in the company's fourth quarter.
Shares of DirectTV(DTV) fell after the company disclosed a pre-tax charge of $25 million due to misreporting of subscribers in its Latin American business.
Shares of Clearwire(CLWR) fell after the Dish Network(DISH) pulled its bid, just days after Clearwire recommended its shareholders back an offer from Sprint(S).