The S&P 500 ended its 6 day winning streak on Wednesday to close 0.2% lower.
In terms of data, housing was again the focal point yesterday and the data wasn’t that good. We started with mortgage applications data from MBA; The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, declined 3.3 percent last week.
The much looked at New Home Sales numbers were also pretty bad. The U.S. Commerce Department reported that the annualized sales pace of new single-family homes fell 14.5% to a seasonally adjusted 384,000 last month. This was a huge miss from economists’ forecasts of 450,000, and would add to worries that growth in housing has started to stall in an otherwise broad economic recovery in the US.
On The Forum
Participants on the forum remained focused on discussing the earnings numbers from the previous night and adjusting their positions based on the new data. From the previous day’s earnings, forum participants appeared to be the most impressed with the positive numbers from GILD.
On the broad market, forum participants discussed how, in the recent past, poor macro data was usually seen as good news for stocks as it increased the possibility of Fed easing. Participants discussed if they could see that dynamic again with the poor housing data, however, that did not turn out to be the case.
Wednesday was a big day for earnings, and participants on the forum were generally impressed by earnings reports from heavy-weights AAPL and FB.
The investor sentiment appears to have improved after last night’s blowout earnings from AAPL and FB, and therefore the path of least resistance may be higher for the stocks.
In terms of macro data, we have Durable Goods Orders, Claims (today at 8:30AM ET); and Markit US Services PMI and U. Michigan Confidence (tomorrow.)
The bulk of this week’s remaining earnings will come out tonight including AMZN, BIDU, BRCM, LVS, MSFT, P, SBUX, and V. The Ford Motor Company reports tomorrow morning.
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