The economy continues to give us mixed signals. Here is a succinct list of what happened last week:

Positives
1) University of Michigan confidence rises to 5 month high
2) Initial Jobless Claims “4 week average” falls to lowest since Sept ’08
3) NFIB small business optimism index rises almost 3 pts to best since May
4) Wholesale Inventories jump more than expected, good for GDP
5) Global criticism of Fed’s Quantitative Easy II

Negatives
1) Consumer 1 yr inflation expectations rise to 3%, most since June
2) 30 yr bond auction very weak, yield rises to 5 month high, 10 yr yield at two month high, average 30 yr mortgage rate rises to one month high.
3) Chinese stocks slammed on inflation and rate hike fears
4) Interest rates on PIG (Portugal, Ireland, Greece) jump. Spain and Italy also see rise in yields, pressure for Ireland to tap EFSF grows
5) Wholesale Inventories rising, unwanted inventory?
6) Cisco’s earnings report disappoints Wall Street- company specific or not?