Overnight economic data from China solidified prior news that
Chinese homebuyers were aggressively speculating on further home
price gains. Chinese home prices rose in 67 of 70 cities, including
11% gains in areas like Guangzho. In March, the Chinese government
began restricting perspective homebuyers on their second mortgages.
US equities opened the day higher but only stayed in positive
territory for a few minutes before selling off into the red. A
brief bout of selling dropped the S&P 500 to its low of the
days before retesting the flatline. However, late selling overcame
all of the positive momentum and the index closed near its low of
the day at 1541.
US economic data was unchanged from last week and has returned to a
normalized trend after fluctuations due to seasonal adjustments
surrounding Easter. Weekly initial jobless claims rose to 352,000
from last week's revised higher print of 348,000. The 4-week moving
average stands at 361,300. The Philadelphia regional manufacturing
survey fell to 1.3 from last month's 2.0, and below the 3.0
consensus. The downdraft was highlighted by weaknesses in new
orders, employment, and prices paid.
) reported earnings after market close, beating on EPS and missing
on revenues after traffic acquisition costs.
) had a middling quarter, beating slightly on EPS and inline
revenues, but guiding down on full-year expenses.
) missed on both EPS and revenues and fell more than 4% in the
Tomorrow's Financial Outlook
Tomorrow is monthly stock options expiration, so it is unlikely
that there will be high volatility as stocks tend to come to rest
on round numbers. There will be no major economic reports in the
Global economic data is equally light with Germany reporting its
producer price index and Canada reporting consumer inflation.
Year-over-year consumer inflation is expected to decline to 1.1% in
March from 1.2% the prior month.
Earnings will continue with