The majority of economic reports released last week indicated the economy continues to grow and strengthen.  Bond yields dropped and Homebuilders’ confidence soared.  Initial jobless claims fell.  And the bell-weather Philadelphia manufacturer index came in at a much higher reading than expected.  Moody’s, the bond rating agency, raised America outlook to “stable” from “negative”. 

On the negative side, Detroit declared bankruptcy – the biggest ever municipal bankruptcy in the U.S.  Gas prices rose $.10 per gallon last week.  Housing starts and retail sales results disappointed.