It was an odd day in the markets with strong demand for Treasury bonds even as stocks recovered off of the lows to close relatively flat.

There was an underlying sense of unease with regards to the European situation.

German GDP numbers confirmed a slowing German economy and Italian Prime Minister Monti sounded a warning regarding austerity measures.

Rumors continue to swirl in the long-running rating agency Standard & Poor's versus France saga even if (majority French-owned) rating agency Fitch said that it would not change France's ratings in 2012.

The Fed's beige book release confirmed the cautious tone of the U.S. economic recovery.

On a positive note, President Obama continues to take the initiative in what may prove to be a brilliant election year strategy.

President Obama announced that he will consider a set of tax measures and incentives to encourage U.S. corporations to make more domestic investments thereby boosting employment.

Monetary policy has run its course and the time is ripe for fiscal measures to resurrect the world's largest economy from its stupor.

Candidate Mitt Romney took another step closer toward securing the Republican Presidential nomination as he came first in the New Hampshire primary.

Whether or not this is a reprise (albeit the Republican version) of a John Kerry-like candidacy remains to be seen.

In one more chapter of a long-running shadow war, another Iranian scientist was assassinated.

Even as the broader market for commodities (copper, gold, aluminum etc.) comes under pressure this year, energy prices may remain elevated.

Advance retail sales and initial jobless claims numbers are out on Thursday.