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

Positives:

1) ISM manufacturing and services indices solid
2) ABC confidence rises 3 pts and is 1 pt within the best since Sept ’08
3) German unemployment rate falls to 7.4%, the lowest since Mar ’92.
4) Canada reports blowout jobs #, 630k adjusted for US population size
5) Debt of Spain, Italy, Portugal, Greece and Ireland rallying in anticipation of expanded EFSF program
6) Avg hourly earnings rise twice expectations in Jan payroll report
7) Jan retail comps better than expected

Negatives:

1)Treasury yields break out across the curve, yes economy improving but inflation pressures building
2) Bernanke ignores market signals and company commentary on potential input cost pressure pass thru and he continues full speed ahead
3) China state sector manufacturing PMI falls to 5 month low
4) Euro Zone CPI up 2.4%, most since Oct ’08