(As of 7:42 am pacific)
Stocks recover after yesterday’s losses but the rally is
tempered by US home sales data. US home
prices dropped sharply in February hitting the worst level in nearly a decade,
according to the S&P/Case-Shiller 20-city composite Index. The index fell 0.8% from January and 3.5%
year over year. The index hit its lowest
level since October 2002 with 16 of the 20 cities measuring negative readings
while only 3 showed gains. According to
private research group, the Conference Board, a US consumer confidence gauge fell
to 69.2 in April from a revised March reading of 69.5, declining for the second
month in a row. Earnings dominated the
morning session with several companies posting better than expected
results. AT&T profits rose to $3.58
billion or 60 cents/share, shares were up 3.5%.
3M Co. profits rose 5% beating estimates. The maker of adhesives and other industrial
products raised the low end of its 2012 earnings forecast to $6.35 a share and
kept its top end at $6.50 a share. After hitting its lowest level since mid
January during trading yesterday, the Stoxx Europe 600 bounced back. European markets were hit hard yesterday on
weak manufacturing data and political uncertainty in France and the Netherlands. Asian stocks were mixed and Japanese shares
declined as the yen appreciated because of European worries. Oil bounce back up 0.86% to 104.00 and gold
also added back 0.81% to 1645.90. The US
dollar was down and the 10 yr. treasury yield rose to 1.95%. The 30 yr. mortgage rate remained at historic
lows at 3.82%. The CBOE volatility index
opened flat at 19.11.
