Weekly Market Commentary:

Friday's March employment report showed better than expected job growth (180,000 jobs added) and the unemployment number contracted to 4.4% showing a U.S. economy that just refuses to quit despite Alan Greenspan's warning several weeks ago. All that fell on stocks like a deaf ear, as equity markets were closed Friday. Contrary to our concern last weekend, stocks zoomed ahead in the holiday shortened week.

The NASDAQ Composite was the weekly leader gaining 49 points (+2.0%) with the Dow a close second adding 206 points (+1.7%). The S+P 500 picked up 22 points (+1.6%) and the Russell 2000 wasn't far behind adding 12 points (+(1.5%). That stocks did so well in just a four day trading week was way ahead of our own modest expectations, but we'll take it.

While stock trading was closed for the Friday holiday, bonds did trade in an abbreviated session. The seesaw economic numbers released over the past week or two have finally created enough impetus to push the yield on the 10 year Treasury note to 4.75% by Friday's close. For the first time in a while, the yield curve has finally flattened and it will remain to be seen how this affects the stock market.

Combine a flattened yield curve with the fact that analysts have been anxiously reducing U.S. economic growth estimates for the remainder of the year and the risks increase that stocks could reverse even though they bolted higher last week. Equities were further boosted by the fact that crude oil prices finally gave back 2.4% of their recent gains and the Street is awash in liquidity. Big time merger and acquisition activity (Chrysler and First Data) remains exceedingly strong, even after last year's record pace.

In the week ahead, Monday Nokia's royalty deal with Qualcomm expires with the San Diego-based company expected to seek arbitration to settle things up. Tuesday, Alcoa reports earnings and the Bank of New York holds a shareholder meeting. Wednesday, minutes from the last FOMC Committee meeting should offer clues about eliminating references to further rate hikes, while Fed Chief Ben Bernanke talks about market discipline and regulation in the afternoon. Chicago Fed President Michael Moskow addresses economic outlook in Illinois Wednesday night.

Thursday brings the initial jobless claims report with most analysts expecting an up tick to 320,000-330,000 claims. Economists will also be looking closely at the non-fuel portion of the March import prices report which fell 0.2% in February. (Let's hope there's not an up tick in prices to further spook the Fed.) Friday the March producer price index is expected to show a 0.7% rise in the headline index and a 0.2% increase in the core number, and GE's first quarter report will reveal how bad a hit the Dow leader's lending unit has taken from the sub-prime mortgage fiasco.

It ought to be an interesting week, so stay tuned!