Talk is building that the economic recovery may prove stronger than expected. Thursday's economic data included strength in both imports and exports, a dip in jobless claims, and improvement in gasoline demand. Economic recovery would move forward the risk of inflation and the need to remove stimulus. These questions continue to weigh on the dollar with the dollar index down 0.3 percent to a new 12-month low at 76.80. Gold firmed $5 to $995 with bulls saying it's ready to make a run at $1,100. Oil ended over $72 with bulls talking about $75.
Company news is definitely upbeat as a run of companies raise guidance. This session's run included Texas Instruments, Procter & Gamble and General Mills. The S&P 500 rose 1 percent to 1,044.14. More and more are targeting 1,200 for the S&P twelve months out. Demand for Treasuries is definitely on the rise, indicating that retail investors are moving out of cash and seeking return, however limited. Today's 30-year bond auction was unusually strong and capped a week of strong auctions. The yield on the 30-year bond fell 14 basis points on the day to 4.19 percent, 4 basis points below the auction's high yield.