Initial Jobless Claims moved higher to 386,000 versus estimates of 365,000, and the Philly Fex Index showed a bigger drop than expected in manufacturing. That combination of news is still not enough to keep stocks down after IBM reported better than expected earnings. The consensus is that if markets take another beating, the Fed will come to the rescue with QE3. This gives investors a win-win belief that either way they will do well. mortgage bonds are holding on to their highs, but have not moved above the range they have traded in for the last 10 sessions. With rates at the all time lows, we will continue with a locking bias for short term transactions.