• Global stocks are higher with the European DJ Stoxx 50 Index up +0.01% and March S&Ps up +0.90 points. The dollar and Treasuries are weaker and commodities are higher as yields on Greek government bonds fell after French President Sarkozy said the Euro-Zone is ready to rescue Greece should it need help in funding its deficit. The euro also strengthened after former Fed Chairman Volcker said European officials are lucky that the Euro-Zone's first major crisis was sparked by one of its smaller members and that he's "still a believer in the euro." European stocks fluctuated between small gains and losses as a rally in retailers offset a decline among health-care companies. Metro AG, Germany's biggest retailer, rose 1.6% after Morgan Stanley upgraded the stock to "equal weight" from "underweight," while Petreofac gained 3.9% after it reported net income last quarter of $353.6 million, beating analysts' estimates of $331 million. AstraZeneca Plc slid 1.5% after its experimental Recentin medicine failed to equal Roche's Avastin for use as a first-line treatment against colon cancer.

• The Asian markets today closed higher with Japan up +2.09%, Hong Kong +1.97%, China +0.81%, Taiwan +1.25%, Australia +0.85%, Singapore +1.59%, South Korea +1.72%, India +0.64%. Asian stocks rose on carry-over strength from last Friday's gains in US markets following the better-than-expected Feb US jobs report and as concerns eased over Greece's debt crisis. Japanese exporters closed higher, led by a 4.7% jump in Nissan and a 1.6% increase in Sony, after the yen weakened to a 1-1/2 week low against the dollar. Chinese stocks rallied after PBOC Governor Xiaochuan said "we must be very cautious about the timing of normalizing policies," which suggests the Chinese government might delay withdrawing stimulus to support the economy.

• March S&Ps this morning are trading up +0.90 points. The US stock market last Friday rallied the entire day and finished just below its high (Dow Jones +1.17%, S&P 500 +1.40%, Nasdaq Composite +1.48%). The S&P 500, Dow Jones and Nasdaq Composite all rose to 1-1/2 month highs. Bullish factors for stocks included (1) increased confidence that the economic recovery is strengthening after Feb nonfarm payrolls fell less than expected (-36,000 versus expectations of -63,000), (2) the unexpected rise in Feb manufacturing payrolls which posted their first back-to-back monthly increases for the first time in nearly 4 years (+1,000 versus expectations of -18,000), (3) the stronger-than-expected Feb unemployment rate (unchanged at 9.7% versus expectations of +0.1 to 9.8%), (4) strength in energy and raw material producers after commodity prices rose on optimism a strengthening global economy will increase demand for raw materials, and (5) the unexpected increase in Jan consumer credit (+$5.0 billion versus expectations of -$4.5 billion), which is positive for consumer spending.

• Bearish factors for stocks included (1) the prediction from Oppenheimer that Fannie Mae and Freddie Mac may force banks to buy back $21 billion of home loans this year as part of a crackdown on faulty mortgages which could cost US banks $7 billion of losses when those loans are returned and get marked down to their true values, (2) comments from Chinese Premier Wen Jiabao who warned of "latent risk" in China's banks, which raises speculation that the Chinese government will continue to rein in bank lending that could slow the Chinese economy and dampen the global recovery, and (3) the 8 bp rise in the yield on the 10-year T-note to a 1-week high of 3.70%, which increases the cost of capital for consumers and businesses.

• Hewlett-Packard (HPQ) lost 0.7% in European trading after the computer maker revised its Q1 earnings results, cutting profit by 3 cents a share, after a lawsuit against its Electronic Data Systems unit increased legal costs.

• Xyratex (XRTX) rose 1.6% in pre-market trading after the provider of data storage and network technology raised its Q1 earnings forecast to 77 cents to 87 cents, higher than its previous forecast of 24 cents to 52 cents.

• June 10-year T-notes this morning are trading down -3 ticks. T-note prices last Friday slumped to a 1-week low and closed down -15 ticks at 117-015. Bearish factors last Friday included (1) the smaller-than-expected loss of jobs in the Feb nonfarm payrolls (-36,000 versus expectations of -63,000), (2) the unexpected rise in Feb manufacturing payrolls, (3) the stronger-than-expected Feb unemployment rate (unchanged at 9.7% versus expectations of +0.1 to 9.8%), and (4) reduced safe-haven demand for Treasuries after the US equity market rallied to its highest level in 1-1/2 months. Bullish factors included (1) comments from Chicago Fed President Evans who said that he needs to see signs of "highly sustainable" growth before he would support steps toward tighter monetary policy, and (2) a lack of wage pressures after Feb average hourly earnings rose less than expected (+0.1% m/m and +1.9% y/y versus expectations of +0.2% and +2.0% y/y).

• The dollar index this morning is weaker with the dollar/yen +0.11 yen and the euro/dollar +0.31 cents. The dollar index last Friday shed early gains and finished slightly lower. Bearish factors last Friday included (1) euro-positive comments from Jean-Claude Juncker, who heads the group of Euro-Zone finance ministers, that Greece "won't be left alone" as it tries to tame a record budget deficit, (2) comments from Chicago Fed President Evans who said he needs to see signs of "highly sustainable" growth before he would support steps toward tighter monetary policy, and (3) reduced safe-haven demand for the dollar after the stock market rallied. Bullish factors included (1) the slump in the yen to a 1-1/2 week low against the dollar after the Nikkei newspaper reported that the BOJ would discuss ways to lower short-term rates at its 2-day policy meeting starting March 16, and (2) the stronger-than-expected Feb US nonfarm payroll report, which boosted speculation that the Fed may be closer to interest rate hikes as the economy strengthens.

• April crude oil prices this morning are up +34 cents and Apr gasoline is +1.10 cents. Apr crude oil last Friday rallied and settled up +$1.29 per barrel. Apr gasoline closed up +3.73 cents per gallon. Apr crude climbed to a 1-3/4 month high and Apr gasoline rose to a 17-month nearest-futures high. Bullish factors included (1) the weaker dollar, (2) the smaller-than-expected loss of jobs in the Feb US payrolls report, which bolsters optimism that fuel demand will strengthen in the US, the world's biggest energy-consuming country, (3) comments from China's Ministry of Finance that China plans to boost reserves of most commodities this year, including crude oil, which may lead to increased Chinese demand for crude, and (4) the prediction from JPMorgan Chase that Chile, whose refineries were damaged from last week's earthquake, may have to import 4 million barrels of crude and crude oil products. Bearish factors included (1) the prediction from the chief energy economist from Deutsche Bank AG that "demand is tepid and there's no shortage of oil" which should begin to deflate the price of oil sometime this year, and (2) continued slack US fuel demand after US gasoline demand fell 2% last week to 8.88 million barrels a day.

Earnings reports (confirmed releases, sorted by mkt cap) HRB-H&R Block (BEST earnings consensus ($0.16), THO-Thor Industries (0.29), YGE-Yingli Green Energy Holding Company Limited (0.15), TIVO-TiVo (-0.12), CASY-Casey's General Stores (0.39), ULTA-Ulta Salon, Cosmetics & Fragrance (0.30), WX-WuXi Pharma Tech (0.17), STWD-Starwood Property Trust (0.05), VVUS-Vivus (-0.25), RUE-Rue21 (0.30), NCMI-National CineMedia (0.25), SYX-Systemax (0.34).

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