US stocks decline to start the week as data shows Spain
has entered into a recession. In the US
consumer spending climbed in March after the biggest gain since August
2009. Household purchases, which account
for nearly 70% of the economy, increased 0.3% in March after an upwardly
revised 0.9% increase in February.
Incomes increased 0.4%, the most in 3 months, while the savings rate
rose slightly to 3.8% from 3.7%. In
Europe, Spain records its second consecutive contractionary quarter, reaching
the official definition of a recession.
The Spanish economy contracted 0.3% in the first quarter of 2012,
following a 0.3% decline in GDP in the fourth quarter of 2011. In Germany, German retail sales rebounded in
March as unemployment drops, inflation slows, and personal incomes drifted
up. Stocks throughout the region were
mostly down. In Asia, Hong Kong led the
way on Monday as the Hang Seng Index rose 1.70% following Friday’s finish on
Wall Street which saw stocks rise on strong corporate earnings. In company news today, Barnes and Noble
shares jumped 70% as the bookstore announces a digital-reading technology
partnership with Microsoft as the software giant plans to invest over $300
million in the company. Oil prices
dropped 0.75% to 104.10 while gold also was down 0.76% to 1652.20. US dollar was mostly down and the 10 yr.
treasury yield drifted down slightly to 1.92%.
30 yr. mortgage rates remained at 3.82%.
The CBOE volatility index edged up higher, up 6.13% to 17.32.
