Market Analysis

US Treasury Notes opened slightly worse this morning but the 10 Yr Note has moved to breakeven as stocks have reversed course from early gains and now are in negative territory.  Mortage-backed securities (MBS) issued by Fannie Mae and Freddie Mac opened flat but have improved slightly in later morning trading.  Stocks are trading lower on concerns that top line revenue growth is not increasing at a level required to sustain continuing corporate earnings growth.

In economic news, Initial Jobless Claims for the week ended 7/24/10 came in at 457,000 which was slightly better than the 464,000 analysts had been projecting.  Continuing Jobless Claims for the week ended 7/17/10 came in at 4.565 million which was just slightly higher than the 4.550 million expected number.