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Why bonds are important to watch this week

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Next week's market movers: Domm

Stocks are likely to take their cue from the bond market in the coming week, as traders worry low yields are a warning that the economy is not springing back.

Even with the choppy trading of the past week, the Nasdaq eked out a small gain while the Dow, S&P 500 and Russell 2000 were all lower. The 10-year yield, a lightning rod for stocks, rose to 2.519 percent after better-than-expected housing starts Friday.

The week ahead is light on economic data, but much of what is available will have to do with housing—an area of concern. Existing home sales are Thursday and new home sales are reported Friday. There is also the release of minutes from the last Federal Reserve meeting on Wednesday afternoon, and about a half dozen Fed speakers will be discussing the economy throughout the week.