Market Analysis

Bonds are up this morning on continued weakness in stocks over continued fears regarding the debt crisis in Europe.  Underlying the concern about the European debt crisis is fear that required public sector austerity measures will cause Europe to slip further into recession which will drag down other economies. European countries have a higher percentage of GDP tied to public sector spending.  

In economic news, the April ADP Employment Change report showed that the private sector added 32,000 jobs which was slightly better than the 30,000 expected.  The April Institute of Supply Management (ISM) Service Sector index came in at 55.4 which was slightly lower than the 56.1 the market had been expecting but which matched the index figure for March.