Market commentary

Bonds rallied sharply in the wake of Bernanke’s uncertain economic outlook on Wednesday, however, bond prices fell Thursday and are lower this morning as more positive corporate earnings reports have served to lift spirits and stock prices. Ford beat estimates nicely and is forecasting a continued steady rise in aggregate sales and profits. Verizon and McDonalds also beat. After digesting the morning’s earnings releases, the focus will be on the noon eastern release of the European stress tests of financial institutions. While subject to questions of transparency and severity, the stress tests are poised to answer some questions and remove some uncertainty from the Euro region. With US markets still open when released, the stress tests are poised to be market-moving.