Last week there were more NEGATIVE than POSITIVE developments, and short term investors sold stocks as a result.

Below is a succinct list of last week’s events:

Positives:
1) Relief for the consumer as gasoline prices fall $.10 from last week’s high
2) Initial Jobless Claims fall to 409k from 438k (but still above 400k for 6th straight week)
3) Refi’s rise to 5 month high as mortgage rates fall to 5 month low
4) Housing starts/permits below expectations as we have enough existing homes on the market to last 9.2 months at current sales rate
5) German economic sentiment index hits record high, dating back to 1991

Negatives:
1) Greece reaching boiling point, Spanish 2 yr yield up almost 30 bps on week
2) Existing home sales less than expected, not a surprise but still huge drag
3) Housing starts/permits below expectations, continued impact on construction
4) May Philly and NY mfr’g survey’s well below forecasts as mfr’g showing signs of moderation
5) Motor vehicle production falls sharply in April in reaction to Japan disaster
6) Bloomberg consumer confidence falls to lowest since Aug
7) UK CPI hits 4.5%, 3rd highest reading since 1992