Market Analysis

Bonds are up slightly and stocks are expected to open weaker as Euro-zone debt fears flash again.  This weekend in regional elections, Spain's Socialist Party faired very poorly.  These elections were viewed as a referendum on Spain's austerity measures in response to their debt crisis.  Political uncertainty in Europe undermines investor faith in the European Union and that the "PIGS" (Portugal, Ireland, Greece and Spain) will find a way forward that does not involve losses for their creditors. 

The economic calendar is vacant today.  On Tuesday, we will see April New Home Sales. On Wednesday, we will see April Durable Goods Orders.  On Thursday, we will see Weekly Initial and Continuing Jobless Claims and the 2nd estimate for 1st Qtr 2011 GDP and on Friday, we will see April Personal Income and Spending, March Pending Home Sales and the Final May Univ of Michigan Consumer Sentiment Index.