Retail sales for June came in lower than expected this morning, and that pressured stocks lower at the start. This week has a full schedule of economic reports. However, the most important event of the week may be tomorrow when the Fed chairman Ben Bernanke begins his semi-annual 2day testimony before Congress. Many expect the politicians to continue to pressure the Fed to act in the name of the economy, while failing to come to terms on any kind of federal budget. mortgage bonds are continuing to hold to the upper end of their trading range, and that will keep interest rates at their lows. We will maintain a locking bias on shorter term transactions.