Glass half empty
Another week, another long list of companies that reported earnings. In most cases, earnings were in line with expectations. But this environment is a negative one where most investors see the glass as half empty rather than half full. Consequently, many of the earnings reports were simply considered bad news and seen as reasons to sell not buy. The Dow Jones Industrials Average ended the week below the psychologically important 10,000 mark. In general, price declines were the largest since last September.

Glass half full
The economic news was generally favorable this week, but not so favorable to make bond investors worry about an imminent shift in the Fed's monetary policy. The news didn't lead to gains in Treasury yields. In fact, negative psychology in the equity market fed a modest rally in the Treasury market. As a result, yields on Treasury securities were down from a week ago.

The lower Treasury yields have helped reduced mortgage rates in the past couple of weeks. In the week ended April 26, the 30-year fixed rate averaged 6.88 percent, down 30 basis points from the high of 7.18 percent reached in the week ended March 29. The lower mortgage rates could give a new zip to the housing market.