Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Market Recap: Economic Data Mixed, Consumer Confidence Falls

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
On the Cyprus front, there was little major news since Cyprus banks remain closed until Thursday. Yesterday's "template" of banking actions -- imposing losses on the private sector rather than a bailout from the public sector -- continued to be reiterated in the EU Parliament.

In the US, while there was a good deal of new data, the results were mixed. The early durable goods orders report showed a large increase in orders, though mostly due to large aircraft orders. Monthly durable goods orders rose 5.7% in February from last month's 3.8% decline. This decline was revised up from the prior 5.2% drop. However, the ex-transports index fell 0.5%, less than the estimated gain of 0.6%, which highlighted the weakening demand under the surface.

In home sales data, new home sales dropped to an annualized rate of 411,000 from last month's 431,000 (previously 437,000). S&P/Case-Shiller home price data showed an annual rise in the composite index of 8.08%, more than the 7.85% expected, and up from 6.84% last month. Note that this data is from January so it is a bit stale.

Lastly, consumer confidence provided the most dire warning, even more so because it is partially tied to the performance of the stock market. The Conference Board's measure of consumer confidence dropped to 59.7 in March from 68.0 last month, largely tied to decreased feelings toward future economic expectations. The present situation subindex dropped to 57.9 from 61.4, and future expectations dropped to 60.9 from 72.4. Year to date, the index has dropped to 59.7 from 66.7 as real incomes have fallen.

US stocks closed near their highs of the day as the Dow Jones Industrial Average gained 0.71%. All 10 of the S&P 500 sectors were in positive territory, led by healthcare (NYSEARCA:XLV) and energy (NYSEARCA:XLE). Treasuries traded higher throughout the day after making a low in the early parts of the US equity session. The US Treasury auctioned $35 billion worth of 2-year notes at a high yield of 0.255%.

Tomorrow's Financial Outlook

More home sales data is on the calendar for tomorrow in the form of pending home sales data. On a annual basis, pending home sales are expected to rise 9.2%, down from a 10.4% rate the month prior. Additionally, mortgage purchases and refinancing activity will be reported before the market open.

There will be a number of Federal Reserve officials speaking tomorrow. Boston Fed President Rosengren, Cleveland Fed President Pianalto, and Minnesota Fed President Kocherlakota will all speak tomorrow on the economy and monetary policy. Of the three, only Rosengren is a voting member on this year's FOMC, and his recent commentary has been very dovish.

Global economic data on the calendar includes Japanese retail sales, eurozone consumer inflation, and eurozone consumer confidence. Year to date, the Japanese Nikkei stock index is up over 20% and retail sales are expected to rise at a 0.5% monthly rate. Eurozone consumer confidence is expected to decline to 90.5 from last month's 91.1.

Notable earnings include PVH Corp. (PVH) and Red Hat (RHT).

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE