Stocks and exchange traded funds (ETFs) are fluctuating this morning, one day after the Dow Jones Industrial Average hit a 13-month high. Could reports on housing prices derail the markets?

In the third quarter, median home prices declined across the nation. One out of every 10 cities saw declines, and sales of distressed properties accounted for 30% of all sales, reports J.W. Elphinstone for the Associated Press. On the plus side, home sales continued to climb. Third-quarter sales were an improvement over both the second quarter and last year’s.

  • MacroShares Housing Up (NYSEArca: UMM): down 8.6% in the last month

Sen. Chris Dodd introduced a financial overhaul bill this morning, which seeks greater changes than any envisioned by the White House or the House of Representatives. The 1,100-page draft would create an agency charged with identifying and removing systemic risks to the economy and consolidate bank regulation under a single regulator, report Michael R. Crittenden and Jessica Holzer for The Wall Street Journal.

  • Financial Select Sector SPDR (NYSEArca: XLF): up 20.5% year-to-date

Treasuries are rising ahead of a $25 billion auction this week of 10-year notes. Analysts say the auction could be challenging. One analyst noted that recent economic indicators, including the jobs report last week, should support bond prices, says Ben Rooney for CNNMoney.

  • iShares Barclays 7-10 Year Treasury (NYSEArca: IEF): down 4.6% year-to-date

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.