Equity and Treasuries post modest gains while the Yen continues to be weak

- Indices are near session highs after the release of strong Q4 productivity numbers ahead of the open. Treasury markets have rallied from a slightly lower open with the yield on the 10-year slipping below the 4.75% level ahead of this afternoons auction results. The NASDAQ is outperforming early in the session helped by technology stocks led by CSCO +4.5%. A strong earnings report from the Co. and increased guidance has re-ignited interest in some of the telecom equipment stocks. JNPR +3.3% SCMR +2.5% TLAB +2.7% CIEN +2.6% PMCS +4.3% IDTI +6% FNSR +6% ADTN +3% Stocks that have hit some rough waters after reporting earnings include: WHR –3% CAKE –3% EQR –5% PLNR –7% WIRE –4% ICE –2.5% MEDI –8% NUS –8% SLE –2% Shares of EAGL are down 18% after its $36 LBO offer fell apart.

- In the currency markets the story continues to be the Japanese Yen. It is lower across the board as traders continue to speculate what will be included in this weekend’s G7 communiqué. Gold is in the middle of today’s range at $659.50 on the April contract while copper has given back a good portion of yesterday’s gains. Crude futures are near today’s lows dipping into negative territory after the release of weekly inventory data. Natural Gas is up 2% but well off of highs made ahead of the floor trading session.