Market Analysis

Bonds have opened flat with a slight positive bias this morning as have stocks. The 10 Yr US Treasury Note is currently yielding 1.95% and the Dow at 12,390,

In Europe, German and French leaders are meeting today and are expected to propose new measures to revive economic growth in Europe and reduce youth unemployment with a key focus on increasing cross-border labor mobility.

In the US, today marks the start of 4^th Qtr earnings reporting season. Alcoa will report results after market close today. The Wall Street Journal reported that according to FactSet a global financial research firm, aggregate earnings for the S&P 500 companies are expected to increase 11.4% over the same period a year ago which, if it occurs, would mark the ninth-consecutive quarter of double-digit percentage earnings growth.

Below is a recap of this week’s economic calendar:

Monday Jan 9 – no key economic data releases

Tuesday, Jan 10 – no key economic data releases

Wednesday, Jan 11 – no key economic data releases

Thursday, Jan 12

• Initial Jobless Claims week ended 1/7/12 – expected 375,000 up slightly from 372,000 the prior week
• December Retail Sales – expected up .4% vs up .2% in November. Excluding the automotive component expected up .3% vs up .2% ex-auto in November

Friday, Jan 13

• Initial January Univ of Michigan Consumer Sentiment Index - expected 71.2 reading vs 69.9 in December