Market Analysis

Bonds are relatively flat with a slight negative bias in front of the Fed post-meeting statement today.  Stocks are down with the Dow currently down 105 points.

In economic news, 2nd Qtr 2010 Preliminary Labor Productivity showed a decline of .9% vs an expected increase of .1%.  Unit labor costs rose .2% vs an expected increase of 1.4%.  In a separate report, June's Wholesale Inventories rose by .1%.  Analysts had been expecting a .4% increase.

The market could experience volatility this afternoon based on what the Fed says in their post meeting statement.  No change is expected in rates but the Fed could announce plans for further "quantitative easing" through additional purchases of US Treasury notes.