Market Digest \u2013 Week Ending 1\/11\r\n\r\nStocks\u00a0managed small gains in a slow news week.\u00a0International\u00a0equities continued to outperform as ECB President\u00a0Mario Draghi\u00a0said the European economy was improving. Treasuries regained some of their losses from the first week of the year.\r\n\r\nWeekly Returns:\r\n\r\nS&P 500: 1,472 (+0.4%)\r\n\r\nMSCI ACWI ex-US: (+0.6%)\r\n\r\nUS 10 Year Treasury Yield: 1.86% (-0.04%)\r\n\r\nGold: $1,662 (+0.4%)\r\n\r\nUSD\/EUR: $1.334 (+2.1%)\r\n\r\nMajor Events:\r\n\r\n \tMonday \u2013 Ten major banks agreed to an $8.5 billion settlement related to improper foreclosures.\r\n \tTuesday \u2013\u00a0Alcoa\u00a0kicked off earnings season on a positive note, exceeding profit expectations.\r\n \tTuesday \u2013Ailing Venezuelan President Chavez announced he will delay being sworn in as he fights cancer, creating uncertainty on who should govern the country.\r\n \tWednesday \u2013 Vice President Biden said President Obama is weighing executive action to stem gun violence.\r\n \tThursday \u2013\u00a0China\u2019s trade surplus rose to $31.6 billion, ahead of expectations.\r\n \tThursday \u2013 ECB President Draghi said \u201ca gradual recovery should start\u201d later this year for Eurozone. The Euro rose.\r\n \tThursday \u2013\u00a0Nokia\u2019s CEO said demand for its Lumina smartphone was strong, providing hope for the battered company and sending shares up over 18%.\r\n \tFriday \u2013\u00a0Wells Fargo\u00a0announced profit rose 24% but disappointed investors with a smaller than expected net interest margin.\r\n \tFriday \u2013 The FAA announced it would conduct a comprehensive safety review of the\u00a0Boeing\u00a0787, but reiterated it is safe to fly.\r\n\r\nOur Take:\r\n\r\nIt was a quiet week in the capital markets, but behind the scenes $18 billion flowed into stock mutual funds and\u00a0ETFs, according to\u00a0Bank of America. By comparison, the biggest week in 2012 was $11.4 billion and the net for the entire year was just $3 billion. There is a mountain of cash held on the sidelines by antsy investors. One week does not make a trend, but if the US stock market can sustain momentum, it could create a self-fulfilling prophecy powerful enough to quickly drive stocks past the all-time highs reached in 2007. The S&P 500 currently sits about 7% below its high-water mark.\r\n\r\nQuietly, the international markets are doing even better. The Euro was up about two percent this week, largely due to comments from ECB President\u00a0Mario Draghi. He spoke of a \u201cpositive contagion\u201d lifting the Eurozone out of recession. This means Mr. Draghi believes the rest of the world is doing well and gaining momentum. He is a very credible source.