Positive
economic reports last week indicated U.S. factory output rose 8%, building
permits jumped 7.7%, 29 of 30 large banks passed their stress tests,
Philadelphia area showed very strong economic strength, and jobs continued to
strengthen.

Some
negative data was reported:  existing
home sales were down in February (weather?), housing starts sunk (weather?),
and National Assn of Home Builders sentiment declined (weather?).

In
summary, manufacturers have built up inventories hoping consumers will spend abnormally
high amounts in the spring.  We will
monitor how well consumers spend and report to you in upcoming issues.