All Things in Moderation

	Last	Change	Percent
S&P Futures	1292.7	3.4	0.26%
Eurostoxx Index	2397.8	1.190	0.05%
Oil (WTI)	101.93	1.220	1.21%
LIBOR	0.5612	-0.001	-0.20%
US Dollar Index (DXY)	80.634	-0.480	-0.59%
10 Year Govt Bond Yield	1.85%	0.00%

Futures are up slightly on earnings and a lack of market-moving news out of Europe. Bond geeks will note that EURIBOR / OIS (a measure of stress in the banking system) has been moving lower since the year began. It is at 84 basis points, having dropped from 101 basis points six weeks ago. ECB funding probably explains some of it, but it is a welcome sign and helps explain the more sanguine mood of Mr. Market recently.

Goldman reported better than expected results this morning based on cost cuts. Compensation fell 21% and staff decreased 7%. On cue, William Cohan was on Bloomberg TV this morning complaining that Wall Street comp is still 50% too high. US Bancorp also reported better than expected earnings.

The Producer Price Index came in a little hot, but still subdued. PPI ex food and energy was up .3% MOM and 3.0% YOY. Inflation is still a non-issue as far as the Fed is concerned. Tomorrow will be a big economic day with CPI, Housing Starts and Initial Jobless Claims. No report tomorrow as I will be in the city all day.

EDIT:  More bullish economic data:  Capacity Utilization increased again to 78.1% and the NAHB Homebuilder sentiment index increased to 25, confirming what the homebuilders have been saying on their conference calls.