The economy continues to give us mixed signals but there were more positives than negative developments last week. Here is a detailed list of these signals:

Positives:
1) Unemployment rate falls to 9.4%
2) ISM services best since May ’06
3) ISM Manufacturing best since May ’10
4) Euro Zone PMI highest since Apr
5) Euro Zone Economic Confidence highest since Oct ’07
6) 16 yr high UK PMI

Negatives
1) Dec Retail comps below expectations
2) New high Portugal yields, 10 yr high in Spanish yields, Italy and Belgium under pressure too all ahead of supply of new bonds next week
3) CRB food sub-index and Journal of Commerce industrial commodity index both at record highs