The economy continues to give us mixed signals.  Here is a detailed list of these signals:

Positives:

1) US equity markets power higher still
2) NFIB small business index rises to best since Dec ’07
3) Initial Claims fall below 400k but normalizing for bad weather as 4 week avg back in line with prior good trend
4) US exports rise to within $3b of record high
5) Univ of Michigan confidence rises a touch to the highest since June
6) China hikes rates again to tame inflation pressures

Negatives:

1) Egypt still a powder keg? (markets certainly don’t think so)
2) Inflation figures in Germany, UK, Brazil, and South Korea all at multi yr highs
3) US short rates move higher, catching up to recent move in long end
4) Mortgage rates back above 5%
5) Portuguese 10 yr yield back above 7%
6) Emerging stock market correction continues