Market commentary

This week has a decidedly slower economic calendar with the most significant releases will being the ISM non-manufacturing report (Tuesday), and wholesale inventories (Friday). Analysts expect the ISM data will show a leveling off in the services sector with a slight increase in the index from 59.7 to 59.9. Tuesday the Fed will release the minutes from its March 15th FOMC meeting. The minutes will be scoured to find any hints of dissention on continuing QE2 to its scheduled conclusion in June. There numerous Fed speakers last week and several of them have indicated a willingness to at least give serious debate to cutting the pro-gram off $100 billion short. However, Fed Chairman Bernanke and several key FOMC members are still fully on board, so it appears unlikely they will stop the QE2 purchases early. This morning we see positive moves in both stocks and bonds, with mortgages approximately .25% better from the close on Friday.