(As of 7:42 am pacific)
Stocks open higher on several positive economic
reports. The Commerce Dept. reported today that US housing starts fell
5.8% to 654,000 in March while building permits jumped to their highest level
in more than 3 years, climbing 4.5% to 747,000.
Multi-dwelling permits jumped 24.2%, while single-family homes, which
account for ¾ of the market for new housing dipped 3.5%. The Federal Reserve announced that Industrial
production was unchanged for the second consecutive month, while economists had
expected a slight gain of 0.3%. In
Europe, the German ZEW Index, a gauge of investor confidence unexpectedly rose
for a 5th straight month.
Spanish and Italian bond yields slipped helping European stocks drift
higher for the day. Asian markets slid
on Tuesday led by continued concern over China.
Data released today showed foreign direct investment into China fell
6.1% in March from a year earlier, attributed largely to the impact of the
European debt crisis and slowing Chinese growth. The International Monetary Fund raised its global
economic growth forecast, projecting the world economy would expand 3.5% this
year and 4.1% in 2013. Forecasts were
lifted from January estimates of 3.3% and 4.0% respectively. Projections for the US economy also were
lifted to 2.1% growth in 2012 and 2.4% in 2013.
Oil gained 1.78% this morning to 104.76, while gold edged up slightly to
1653. The US dollar was mixed. 30 yr. mortgages were down slightly to 3.86%
and the 10 yr. treasury yield edged up to 2.00%. The CBOE volatility index was down 5.47%.
