 GDP fell a revised -6.3% (from -6.2%) for 4 th Quarter 2008  Economists are forecasting a -5.1% decline for 1 st quarter 2009  New orders for core capital goods rose 6.6% in February (likely a correction from Dec and Jan declines)  Sales of New homes rose 5.1% in February (MoM) but down 38% since 2/08

 Sees the S & P rally due to the economic data and what seems to be new liquidity in the marketplace (due to government actions)

 PPIP program released details last week, the program calls for private investors to invest equity capital on an equal-dollar basis with the Treasury  PPIP is estimated $1 trillion in loans will be purchased under the PPIP program.

 The financial sector was the best performer last week (10.42%)  The utility sector was the worst (1.68%)

 PLUNGE phase  Look at financials, financial services, basic materials, consumer discretionary, and consumer staples  HAS NO FEARS OF DEFLATION

 Friday: Non-farm payroll is released (BC believes this is important)  Friday: ISM Services Index is released

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