Market commentary

Despite weak economic data last week and higher oil prices, stocks rallied while Treasuries sold off. The Dow Jones traded at 12,236 Friday afternoon after closing the previous week at 11,858, while the 10-year Treasury sold off 17 basis points, trading from 3.27% to close 3.44% Friday afternoon. This morning we see the markets moving in the same directions as last week; stocks are improving and bonds are worsening. Investors in stocks seem quite bullish regardless of the headlines. The nuclear crisis in Japan appears to be worsening, oil prices remain elevated as the military action in Libya continues, and the sovereign debt problems in Europe are not going away anytime soon. Economic data is in abundance this week with the all important jobs report on Friday. In addition to the data, the U.S. Treasury will be auctioning over $100 billion of new debt this week in the form of 2 year, 5 year and 7 year notes. Mortgage prices are .1255 to .25% worse than the close on Friday.