With no big earnings wins this week, markets traded lower on Thursday, and the Nasdaq turned in its third straight day of losses. Before this past week, positive earnings had bolstered the markets, and according to Reuters, 68.2% of companies have beat expectations so far this season, which is above the 63% average. For the current quarter, profits are expected to grow by 5.3%, which is lower than expectations set at the beginning of the year, but high above the 0.6% gain that was predicted in April. Some positive news came this week, with U.S. retailers reporting a 6.4% increase in April's comparable sales, which is better than the analyst expectation of 4.1%. As well, initial jobless claims fell to 319,000 for the week ending May 3, which was below analysts' estimates of 325,000. In the bond market, yields on 10-Year Treasurys stayed fairly stable throughout the week, having started on Monday at 2.63 and ended Thursday at 2.61. Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Village of Lake Villa, IL: Moody's upgraded this village to Aa3 from A1. The upgrade reflects the village's healthy financial position with ample reserves and positive multi-year financial trends. Other key considerations include the limited tax base, above-average wealth levels and manageable debt burden and pension liability.
• City of Carrizo Springs, TX: Moody's upgraded this city to Baa1 from A3. The rating reflects the city's small tax base which has experienced recent moderate to strong growth, stable financial operations and healthy reserve levels on a percentage basis with significant annual growth in sales tax collections, and a very high debt burden with plans for future issuance.
• Thrall Independent School District, TX: Moody's upgraded this school district to A2 from A3. The upgrade to A2 primarily reflects the district's strengthening financial performance, a very low debt profile, and a low pension burden. The tax base continues to grow but remains modestly sized and somewhat rural in nature.
• Northeast Travis County Utility District, TX: Moody's upgraded this utility district to A3 from Baa1. The A3 rating reflects the district's modest yet stable residential tax base, stable financial position, and a high debt burden with no pension obligations.
• City of Elko New Market, MN: Moody's upgraded this city to Aa3 from A1. The Aa3 rating reflects the city's small tax base favorably located within the Minneapolis-St. Paul Metropolitan Area; growing economy and stable labor market, ample General Fund reserves relative to revenue, and above average debt burden.

Downgrades

• University of Kansas, KS: Moody's downgraded this university to Aa2 from Aa1. The downgrade of the University of Kansas is based on its thin operating performance and limited liquidity as it confronts a period of additional revenue pressures related to the state's budgetary challenges, as well as declining enrollment.
• Ada & Canyon Counties Joint School District No. 2, ID: Moody's downgraded this school district to Aa3 from Aa2. The underlying Aa3 general obligation bond rating reflects Meridian's large, diverse tax base, which is showing signs of rebound after three straight years of declines from 2010-2012; pressured General Fund reserves stemming from two recorded and two expected future years of operational deficits; and a manageable debt profile.
• Emporia State University, KS: Moody's downgraded this university to A2 from A1. The downgrade to A2 from A1 reflects deepening operating deficits resulting in insufficient cash flow to cover annual debt service and the rapid erosion of unrestricted liquidity. The rating also incorporates the university's vulnerability to state budgetary challenges given ESU's relatively high dependence on state appropriations for operations.
• Conewago Valley School District, PA: Moody's downgraded this school district to Aa3 from Aa2. The downgrade to Aa3 rating reflects the district's weakening financial position . The rating also incorporates the district's moderately sized tax base with an average socioeconomic profile, and manageable debt burden.
• Josephine County Unit Joint School District, OR: Moody's downgraded this school district to A1 from Aa3. The downgrade reflects the district's narrow, albeit stable, financial position. The district has historically maintained limited General Fund reserves; however, the district is being outpaced by similarly-rated credits. The rating further incorporates the district's large and stabilizing tax base, manageable debt and pension burdens, and weak socioeconomic profile.
• Bowie County, TX: Moody's downgraded this county's GO rating to Baa1 from A3. The downgrade to Baa1 reflects the county's severely strained financial position, the additional pressure in the current year following the successful rollback election, the below average socioeconomic profile, and slow debt service payout. The rating also considers the county's sizeable and stable tax base.
• Borough of Pitman, NJ: Moody's downgraded this borough to A2 from A1. The downgrade to A2 reflects the borough's weakened financial condition and small tax base. The rating also reflects enterprise risk related to the borough Water and Sewer funds.