>>> CS Pre-Market Indications

AIR LIQUIDE -1% Q1 revenues miss, AIRGAS deal on track, outlook reiterated.
AIXTRON +2% Earnings miss but v low expectations, , guidance reiterated.
BATS +2% Q1 revenues +7.5% v +5.1% exp. Volumes ahead, strong H2 exp.
BAYER +2% Q1 ahead across the board, strong XARELTO sales, new drugs beat
BP +2% Q1 positive, adj net income ahead on Downstream beat. Call @ 2pm
CASINO 0% CNOVA review update, EBIT ahead but further issues identified.
COBHAM -15% Warning, trading profits @ £15m v £50m exp. - £500m rts issue
DSM +2% Q1 profit beat, Nutrition ahead, US mkt slow, maintain outlook
ORANGE +1% Q1 revenues inline, EBITDA flat, no discussion with KPN/ZAIN
PETRA D. -2% Q3 IMS light due to weakness @ Cullinan.
RANDSTAD 0% Q1 EBITDA inline, org gorwth +5%, GM flat, geographically inline
SAB MILLER -1% Kulczyk placing half their holding (24m shrs) @ 4180
SAFRAN +1% Q1'16 adj revenues inline, LEAP on track, no ZODIAC comment
SALZGITTER -4% Q1 sales and earnings light as expected, sector down overnight
SWEDBANK -2% Q1 pre-tax miss, total rev miss, NII small miss v consensus.
TELEFONICA -2% EU Anti-trust regulator to block Huchison's O2 deal
THALES +2% Own 35% of DCNS, contract win to build submarines, Australia.
THYSSENKRUP -4% Loses bid to build 12 Submarines for Australia, sector weakness
UMICORE 0% Q1 trading update bang inline, but enough?
WHITBREAD 0% Inline update, positive COSTA sales, reiterate outlook

>>> Philips' Lumileds division attracts interest; Philips Lighting bids fall abo

Philips' Lumileds division attracts interest; Philips Lighting bids fall about EUR 500m short 

Philips is engaged in talks with candidates for a takeover of its Lumileds division, after a sales bid last year failed, Dutch-language Het Financieele Dagblad reported, citing remarks by Philips CEO Frans van Houten at the presentation of the quarterly results. As Philips Lighting division edges closer towards an IPO, unnamed business bankers told the same publication that bids from the three candidates fell about EUR 500m short of the EUR 5bn sum Philips aimed for, the item added.

Philips is currently engaged in talks with new candidates for a sale of its Lumileds division, the item said. However, the company is in no rush to sell this business unit, CEO Van Houten remarked.

Last year, Chinese Go Scale wanted to pay USD 2.8bn for an 80% stake in the Lumileds division. However, due to intellectual properties concerns raised by US authorities the sale did not materialise, the item noted.

Regarding the sale of Philips Lighting, three private equity parties - Apollo (USA), Go Scale (China) and a consortium of Blackstone (USA) and Onex (Canada) - registered binding bids, the item noted. Unnamed investment bankers said their bids fell about EUR 500m short of the desired EUR 5bn bid Philips was hoping for, the same item noted.

At present, an IPO for Philips Lighting is an increasingly likely outcome, the company indicated.

Het Financieele Dagblad

>>> Darty unions lack legal firepower in face of Fnac, Conforama

MergerMarket

Darty unions lack legal firepower in face of Fnac, Conforama

Unions representing Darty’s [LON:DRTY] employees may prefer one suitor over another, but they lack legal firepower to stymie an acquisition of the UK-listed company, a Darty union representative and an independent sector lawyer told this news service.

The company has been the subject of a bidding war and aggressive stakebuilding over the last week. At market close Monday, Fnac [ETR:FNAC] had an 18.93% stake and a 170p/share offer on the table. Conforama, a subsidiary of South African retailer Steinhoff [ETR:SHF], owns a 20.4% stake and its highest bid to date is 160p/share.

On Friday, six Darty unions issued a joint statement opposing the potential Fnac deal, citing overlaps between the two businesses that, they claimed, could result in more than 3,000 jobs being lost. The statement said the unions preferred the proposed tie-up with Conforama.

The unions are represented on the company’s works council, the lawyer said. Under the so-called "Florange Law" of 2014, works councils could theoretically aim to delay a merger by commissioning a qualified expert to write a report on the tie-up and ask for further information.

However, despite its overwhelmingly French operations, Darty is listed in the UK and any acquisition of the company would be subject only to the UK Takeover Code and would not require a works council report, the first and a second lawyer said. Its unions could only strike in an attempt to block the deal, the first added.

The UK Takeover Code was itself amended in the wake of Kraft Foods Group’s [NASDAQ:KRFT] 2010 merger with Cadbury, and the subsequent plant closures, the second lawyer said. These changes tighten rules on strategic disclosure from offerors, he added.

Rule 24.2 of the UK Takeover Code requires that bidders spell out their plans for the company’s workforce and pension scheme, the second lawyer said, and Rule 25.9 says that the target’s worker representatives have a right to voice opinions in the company’s circular to shareholders.

These opinions must be published by the bidder if received no later than 14 days after the date on which the offer becomes wholly unconditional.

Darty declined to comment.

>>> Finnair is unlikely to be sold to an industrial buyer - Taloussanomat

Finnair is unlikely to be sold to an industrial buyer 

The entire Finnish airline Finnair is unlikely to be sold to an industrial buyer, according to Taloussanomat.

The Finnish-language article cited Inderes analyst Anssi Viljakainen, who said that it is currently uncertain how much the Finnish state will reduce its ownership in Finnair.

Viljakainen said that an industrial buyer would want a significant stake in Finnair or acquire the entire company and he thinks it is unlikely such buyer will acquire Finnair. He said that the current state ownership slows down any M&A for Finnair, which is seen as a negative amongst international investors.

The state owns around 55% of Finnair and there has been recent reports indicating it wants to reduce its share.

Taloussanomat

>>> What to look at today - 26th of April 2016

Dow-0.15% S&P-0.18% Nasdaq-0.21% Russell-0.75%
US Market closed lower with some risk off ahead of a busy week, move also attributed a downturn in crude oil, WTI crude ended its day lower by 2.4% at $42.72/bbl. FOMC will begin its two-day policy meeting tomorrow, and is largely expected to leave interest rates unchanged. consumer staples (+0.7%) and telecom services (+0.3%) ended with the largest gains,commodity-sensitive energy (-1.1%) and materials (-0.6%) spaces rounded out the leaderboard while industrials (-0.6%), health care (-0.4%), and financials (-0.3%) followed. Volumes were below average with 861mil shares. US After Hours KN +23%, TCS +20.6%, SANM +5.7% higher and CNI -4.9%, NBR -4.9% lower on earnings/guidance, PETX +17.4% on license deal. Asian equity markets are down slightly for the 3rd straight session, however declines stayed fairly modest as the 2-month uptrend in emerging markets remains intact. Investors are staying on the sidelines going into Wednesday's FOMC/BOJ double-header, and the dearth of economic data is also keeping sentiment balanced. China's former PBoC adviser Li Daokui reiterated his cautious outlook that the economic downturn has yet to find its bottom, echoing some of the more cautious rhetoric on growing credit risks overnight. In Japan, there was more speculation over the extent of govt cushioning of the impact of last week's earthquake. A local press report that supplementary budget intended to aid in recovery could reach as high as ¥600B was once again rebuffed by Fin Min Aso, who said the extent of the amount of relief has yet to be determined. A Nikkei report noted that Japan's primary pension fund GPIF is looking to tackle appreciating Yen expectations with more hedging programs, while a research note by Morgan Stanley forecast this week's BOJ easing expanded by ¥10-20T and a rate cut deeper into negative territory by at least 10bps.

Nikkei -0.43% Hang Seng -0.63% Shanghai -0.03%

Eur$1.1267 CNH 6.5050 CNY 6.4938 JPY 110.92 GBP 1.4494 CHF 0.9751 RUB 66.3710 WTI$ 42.80 (+0.38%)

S&P-0.02% EuroStoxx +0.30% Dax+0.15% SMI+0.15%

Macro :
BOJ Shouldn’t Add Stimulus Now, Ex-Board Member Nakahara Says

Keep an eye on :
- AIR FP : New Saudi Airline Sets Up A320-737 Duel With 50-Jet Fleet Plan
- AI FP : Air Liquide 1Q Revenue Misses Ests.; Airgas Acquisition on Track
- AIXA GY : Aixtron 1Q Sales Miss Ests., Ebit Loss Wider Than Estimated
- BAYN GY : Bayer 1Q Ebitda Ex-Items Beats Estimates; Confirms 2016 Outlook, Says All Segments Posted Gains in 1Q Oper. Results
- BPE IM : Pop. Emilia Romagna May Bid for Carife, Eyes Banca Marche: MF
- CNV FP : CNOVA Qa net Sales €742
- DRTY LN : Steinhoff’s Conforama Considering Its Options for Darty
- DCNS France : France Wins $39 Billion Contract to Build Australian Subs
- DRW3 GY : Draegerwerk Confirms 1Q Preliminary Results, 1Q Net Loss Widens
- DSM NA : DSM 1Q Sales Below Ests., Ebitda Beats; Confirms 2016 Outlook
- ERICB SS : Ericsson Chairman Bought 50,000 Shares in Company on April 22
- EUZ GY : Eckert & Ziegler BEBIG to Raise EU5.06m From Eckert & Ziegler
- GIL GY : DMG Mori Seiki 1Q Sales Rise 1%; Confirms 2016 Outlook
- HEIA NA : Heineken’s Strategy in China Focuses on ‘Super Premium’
- KPN NA : Orange CFO Says No Discussions With KPN, Zain Group
- KRA1V FH :Kemira 1Q Operative Ebitda Beats Estimates, Sales Miss
- LHA GY : Lufthansa Warns of Strikes and Flight Cancellations Wednesday
- LONN SW : Lonza Says 1Q Business Performance Above Target
- MKS LN : Ex-M&S CEO Bolland Said to Join IAG as Non-Exec Director: Sky
- MMT FP : M6-Metropole Television 1Q Sales Rise 1.4%; Ebita Up 15%
- ORA FP : Orange 1Q Rev., Ebitda Match Ests.; Keeps Outlook Unchanged
- UG FP : PSA Emissions-Test Failures Hinged on Distance Settings
- RAND NA : Randstad 1Q Revenue In Line, Sees Improving Conditions in Europe
- SAF FP : Safran 1Q Adj. Rev. Rises 7.8% Y/y; Full-Yr Outlook Confirmed
- SZG GY : Salzgitter 1Q External Sales Drop Y/y, Trailing Est.
- SOW GY : Software AG 1Q Net Rises 57%; Confirms 2016 Outlook
- SWEDA SS : Swedbank 1Q Net Income Beats Estimates; NII Slightly Below
- TEF SM : EU Antitrust Regulators to Block Hutchison’s O2 Deal: Reuters
- TEL NO : Telenor CEO Brekke Says Voice Revenue Decreasing Sharply: DN
- THULE SS : Thule 1Q Sales, Ebit Beat Estimates as Europe Drives Growth
- TIE1V FH : Tieto 1Q Sales, Profit In Line With Estimates; Keeps Guidance
- UMI BB : Umicore Sees FY Adj Ebit Inc. Assoc. EU335M-EU360M; Est. EU345M
- LANS NA : Van Lanschot 1Q Profit Drops 52%; AUM Rise on Net Inflow
- VOW3 GY : VW Passes Toyota Sales as Stoppages Put Four-Year Reign at Risk
- ZC FP : Safran ‘Won’t Comment on Market Rumours’ on Zodiac Interest

>>> Europe : Brokers Upgrades & Downgrades - 26th of April 2016

>>> Up
*BASF RAISED TO BUY AT KEPLER CHEUVREUX
*IPSEN RAISED TO BUY AT JEFFERIES
*ROYAL MAIL RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*SAIPEM RAISED TO HOLD AT SOCIETE GENERALE
*SECHE ENVIRONNEMENT RAISED TO BUY VS REDUCE AT KEPLER CHEUVREUX
*SMITHS GROUP RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*SSAB AB RAISED TO SECTOR PERFORM VS UNDERPERFORM AT RBC
*TECNICAS REUNIDAS RAISED TO OVERWEIGHT AT BARCLAYS
*TUI RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*XAAR RAISED TO BUY VS HOLD AT PEEL HUNT

>>> Down
*ABERDEEN ASSET MANAGEMENT CUT TO SELL VS NEUTRAL AT CITI
*CLOSE BROTHERS CUT TO UNDERPERFORM AT RBC CAPITAL
*INDRA CUT TO REDUCE AT KEPLER CHEUVREUX
*MAGNIT CUT TO UNDERPERFORM AT CREDIT SUISSE
*MEDIDATA SOLUTIONS CUT TO UNDERPERFORM VS HOLD AT JEFFERIES
*PORSCHE CUT TO ADD VS BUY AT ALPHAVALUE
*SODEXO CUT TO SELL VS HOLD AT BERENBERG
*STATOIL CUT TO HOLD VS BUY AT ARCTIC SECURITIES
*THOMAS COOK CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*UCB CUT TO EQUALWEIGHT AT BARCLAYS

>>> PT Change

>>> Initiation
*BANZAI RATED NEW OUTPERFORM AT MEDIOBANCA; PT EU5.65
*BME RATED NEW EQUALWEIGHT AT BARCLAYS, PT EU32
*EURONEXT RATED NEW OVERWEIGHT AT BARCLAYS, PT EU44
*HOSTELWORLD RATED NEW SELL AT BERENBERG; PT 230P
*ON THE BEACH RATED NEW BUY AT BERENBERG; PT 335P
*PREMIER FOODS RESUMED AT BUY VS RESTRICTED AT JEFFERIES

>>> Call
>> Stock
*CAPITAL STAGE ADDED TO BANKHAUS LAMPE ALPHA LIST
*DIALOG SEMI ADDED TO BANKHAUS LAMPE ALPHA LIST
*PIAGGIO, UBI REMOVED FROM SHORT STOCKS AT MEDIOBANCA
*FERRAGAMO, INTESA SET AS NEW SHORTS AT MEDIOBANCA
*AUTOGRILL, IREN, SIAS REMOVED FROM LONG STOCKS AT MEDIOBANCA
*POP. EMILIA, CERVED, FINMECCANICA SET AS MEDIOBANCA NEW LONGS

>>> Asian Update

Asian Market Update: South Korea GDP slows; Volatility still compressed ahead of BOJ


***Economic Data***
- (KR) SOUTH KOREA Q1 PRELIMINARY GDP Q/Q: 0.4% V 0.4%E; Y/Y: 2.7% V 2.7%E
- (PH) Philippines Feb Trade Balance: -$1.1B v -$1.5Be; Imports $5.4B v $6.8B prior; Y/Y: 1.2% v 12.0%e

***Index Snapshot (as of 04:00 GMT)***
- Nikkei225 -1.1%, S&P/ASX -0.2%, Kospi flat, Shanghai Composite -0.3%, Hang Seng -0.8%, Jun S&P500 flat at 2,083

***Commodities/Fixed Income***
- June gold -0.2% at $1,237/oz, June crude oil +0.3% at $42.77/brl, May copper -0.7% at $2.24/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 2.3 tonnes to 802.7 tonnes; lowest since Mar 16th
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.4880 V 6.5120 PRIOR; strongest setting since Apr 21st; biggest margin of increase since Mar 18th
- (CN) PBOC to inject CNY140B in 7-day reverse repos
- (JP) BOJ offers to buy ¥450B in 5-10yr JGBs, ¥220B in 10-25yr JGBs, and ¥180B in JGBs with maturity over 25-yr

***Market Focal Points/FX***
- Asian equity markets are down slightly for the 3rd straight session, however declines stayed fairly modest as the 2-month uptrend in emerging markets remains intact. Investors are staying on the sidelines going into Wednesday's FOMC/BOJ double-header, and the dearth of economic data is also keeping sentiment balanced. S&P futures are flat, while oil and copper are retreating from recent highs. In FX, USD/JPY is trading sideways around 111 handle, AUD/USD is in a 20-pip range above 0.77, while NZD/USD is up some 30pips on speculation of a neutral policy statement and a rate hold by the RBNZ. China yuan fix was much firmer, reflecting the uptick in repo rates on Monday.

- China's former PBoC adviser Li Daokui reiterated his cautious outlook that the economic downturn has yet to find its bottom, echoing some of the more cautious rhetoric on growing credit risks overnight. Report from IIF also forecast continued outflows from China economy in 2016, albeit the $538B figure was less than $674B withdrawn in 2015.

- In Japan, there was more speculation over the extent of govt cushioning of the impact of last week's earthquake. A local press report that supplementary budget intended to aid in recovery could reach as high as ¥600B was once again rebuffed by Fin Min Aso, who said the extent of the amount of relief has yet to be determined. Later, Aso clarified that Japan is not considering compiling economic stimulus package right now apart from earthquake relief, reiterating that economic fundamentals are solid. Meanwhile, a Nikkei report noted that Japan's primary pension fund GPIF is looking to tackle appreciating Yen expectations with more hedging programs, while a research note by Morgan Stanley forecast this week's BOJ easing expanded by ¥10-20T and a rate cut deeper into negative territory by at least 10bps.

- South Korea put out its prelim Q1 GDP that slowed to 2.7% y/y and 0.4% q/q from 3.1% and 0.7% respectively in line with expectations. Construction investment growth of 5.9% was overshadowed by the same margin of decline in capital investment and a 0.3% q/q drop in consumption. Korean finance ministry said that 2016 forecasts are facing downside risks after the latest data. Among notable Korean earnings results, chip giant SK Hynix results were largely in line with estimates and outlook for DRAM and NAND shipments was fairly benign, sending shares higher by over 5%. In the final hour, Hyundai Motor Q1 results beat on top and bottom line - Net profit came in at KRW1.69T v KRW1.5Te on Rev KRW22.4T v KRW21.3Te.

***Equities***
US equities / ADRs:
- TCS: Reports Q4 $0.20 v $0.20e, R$232.1M v $228Me; +21.3% afterhours
- SANM: Reports Q2 $0.63 v $0.54e, R$1.61B v $1.58Be (1 est); +8.3% afterhours
- PXD: Reports Q1 -$0.64 v -$0.73e, R$685M v $699Me; +3.2% afterhours
- UTX: *RAISES DIVIDEND 3.1% TO $0.66; implied yield 2.5%; -0.2% afterhours
- ESRX: Reports Q1 $1.22 v $1.23e, R$24.8B v $25.5Be; current CEO Paz to retire, effective May 4th; -2.4% afterhours
- NBR: Reports Q1 -$1.41 v -$0.33e, R$597.6M v $633Me; -5.0% afterhours
- CNI: Reports Q1 C$1.00 v C$0.86 y/y, Rev C$2.96B v C$3.1B y/y; -5.3% afterhours

Notable movers by sector:
- Consumer discretionary: Hisense Kelon Electrical Holdings Co 000921.CN -0.5% (Q1 result)
- Consumer staples: Tsingtao Brewery Co 600600.CN +0.8% (Q1 result)
- Financials: Everbright Securities Co 601788.CN -0.3% (Q1 result); REA Group REA.AU +3.7% (acquisition)
- Industrials: Hitachi Chemical Co 4217.JP +8.2% (FY15/16 result); Nidec Corp 6594.JP +3.6% (FY15/16 result)
- Technology: Hynix Semiconductor 000660.KR +5.3% (Q1 result)
- Materials: Yunnan Copper Co 000878.CN -2.8% (Q1 result); Newcrest Mining NCM.AU +0.2% (Q3 result)
- Energy: China Shenhua Energy Co 1088.HK -0.8% (Mar result)

>>> After Hours Summary: KN +23%, TCS +20.6%, SANM +5.7% higher an


After Hours Summary: KN +23%, TCS +20.6%, SANM +5.7% higher and CNI -4.9%, NBR -4.9% lower on earnings/guidance, PETX +17.4% on license deal

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: AMID +26.8% (ticking higher; announced the acquisition of interests in Gulf of Mexico midstream infrastructure and incremental ownership in Delta House for ~$225 mln; revised 2016 guidance and reduced distribution), KN +23%, TCS +20.6%, SANM +5.7%, PXD +2.9%

Companies trading higher in after hours in reaction to news: PETX +17.4% (Aratana Therapeutics announces that Elanco Animal Health, a division of Eli Lilly, has licensed animal health rights to Aratana's Galliprant), BLDP +15.1% (Ballard Power Protonex subsidiary demonstrates UAV propulsion system with Boeing (BA) Insitu; flight demonstrations planned for the second half of 2016), SEED +12.3% (names Dr. William S. Niebur as President and CEO), REXX +4.5% (very light volume; provides update on balance sheet initiatives, closes 2 privately negotiated exchange transactions with certain holders of securities)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: CNI -4.9%, NBR -4.9%, CDNS -3.7% (also CFO Geoff Ribar to retire effective March 31), ESRX -2% (also announced Paz will retire as CEO on May 4 and stay on as Chairman of the Company; Tim Wentworth will assume the role of CEO on May 4)

Companies trading lower in after hours in reaction to news: DRRX -8.5% (commences common stock offering)

>>> US Close Dow-0.15% S&P-0.18% Nasdaq-0.21% Russell-0.75%

Closing Market Summary: Energy Weighs Ahead of Fed Meeting

The stock market ended a quiet session on a lower note as investors maintained a risk-off posture ahead of a busy week. Today's decline can be attributed to a downturn in crude oil, presumed profit-taking, and the underperformance of the heavily weighted industrial sector (-0.6%). The Dow Jones Industrial Average (-0.2%) finished in-line with the S&P 500 (-0.2%) and the Nasdaq Composite (-0.2%).

The equity market opened under selling pressure as investors set their sights on this week's Fed meeting. The FOMC will begin its two-day policy meeting tomorrow, and is largely expected to leave interest rates unchanged. However, participants will be looking for clues regarding the central bank's assessment of the economy and any possible changes to the Fed's path towards interest rate normalization. As a result, today's session saw limited interest in risk assets as investors looked to lock in gains after the broader market's recent run.

The key indices hit their lows in the late morning and briefly bounced off those levels through the early morning. The averages would trim their losses further in the final hour of trade. By the end of the session, six sectors remained in negative territory while countercyclical consumer staples (+0.7%) and telecom services (+0.3%) ended with the largest gains.

The commodity-sensitive energy (-1.1%) and materials (-0.6%) spaces rounded out the leaderboard while industrials (-0.6%), health care (-0.4%), and financials (-0.3%) followed.

The energy space (-1.1%) experienced broad-based weakness as the broader sector pulled back along with crude oil. On that note, WTI crude ended its day lower by 2.4% at $42.72/bbl. Meanwhile, Halliburton (HAL 40.04, -0.80) declined 2.0% after announcing its first-quarter revenue ahead of schedule and postponing its conference call until May 3. The company cited an April 30 deadline for its proposed merger with Baker Hughes (BHI 45.04, -1.39) as reason for its delayed call. 

In the industrial space (-0.6%) transport names displayed relative weakness, evidenced by the 1.2% decline in the Dow Jones Transportation Average. American Airlines (AAL 37.00, -1.21) underperformed among major airlines as investors continued to focus on below-consensus second quarter unit revenue figures and competition among value airlines. Separately, Union Pacific (UNP 87.61, -2.02) declined by 2.3% as the name pulled back from its recent post-earnings gain. The stock has gained 4.5% since reporting on April 21.

Generic drug names displayed relative weakness in the health care space (-0.4%). The sub-group traded lower in sympathy with Perrigo (PRGO 99.40, -21.95), which lowered its first quarter and full-year earnings estimates below consensus. Furthermore, Perrigo also moved lower after reports indicated that CEO Joseph Papa was departing the company to head up Valeant Pharmaceuticals (VRX 35.16, -0.82).

In the consumer discretionary space (+0.2%), media names outperformed after the Justice Department and the FCC approved Charter Communication's (CHTR 207.01, +9.10) proposed acquisition of Time Warner Cable (TWC 209.63, +8.18).

The U.S. Dollar Index (94.83, -0.29) ended off its session low as the yen and the euro gained against the greenback. The dollar/yen pair finished at 111.22 (-0.5%) while the euro gained 0.3% against the dollar (1.1261).

The Treasury complex finished its day moderately lower as the yield on the 10-yr note rose to 1.90% (+1 bps).

Today's participation fell in-line with the recent average as more than 861 million shares changed hands on the NYSE floor.

Today's economic data was limited to March New Home Sales:

  • New home sales in March ran at a seasonally adjusted annual rate of 511,000 (consensus 521,000).
    • That was down 1.5% from February, which saw an upward revision to 519,000 from a previously reported 512,000
    • Taking into account the February revision, the March result was pretty much in-line with economists' expectations, so the headline disappointment isn't as big as it might appear at first blush.
    • Moreover, new home sales in March were up 5.4% versus the same period a year ago.
    • The latter point notwithstanding, sales activity moderated in March, evidenced by a sales pace that was below the prior 3-month average of 526,000.
    • Interestingly, the moderation in sales occurred with a 1.8% year-over-year decline in the median sales price to $288,000.
    • At the current sales pace, the inventory of unsold new homes stands at a 5.8 months' supply, which is closing in on the 6.0-months' supply that is typically associated with normal periods of buying and selling.
    • In March 2015, there was a 5.1 months' supply of unsold homes.

Tomorrow's economic data will include Durable Goods Orders for March (consensus +1.7%) and February Case-Schiller 20-city Index (consensus +5.6%), which will be released at 8:30 ET and 9:00 ET, respectively. Finally, April Consumer Confidence (consensus 96.7) will cross the wires at 10:00 ET. 

  • Dow Jones +3.2% YTD
  • S&P 500 +2.2% YTD
  • Russell 2000 +0.1% YTD
  • Nasdaq Composite -2.2% YTD