Markets were mostly flat this week, but were pummeled on Thursday due to employment data. For the week, the Dow lost 1.36%, and the S&P .36%. The NASDAQ  actually rallied Friday, ending the week up .98%.   Initial jobless claims unexpectedly rose on Thursday by 7,000 from the week prior, for a total of 480,000. While still below the 500,000 level, the unexpected increase signals that there is still far to go on the road to recovery.

Bond data released this week painted an interesting picture of the market.  Near record amounts of non-investment grade bonds have been sold this year.  The record was set in 2006, with $143.5 billion sold. This year, $142.8 billion have been sold.   These compare to last year, with only $48 billion of these bonds being sold. The new figures tell us that the appetite for risk is back in bonds.  Once again, investors are reaching for extra yield, and taking more risk to do so. It is frightening to think that investors have already forgotten the lessons to be learned in the near-collapse last year.

Next week, we continue to looks for signs of recovery.  We will get readings on the housing market, employment, and consumer confidence.