US equity market recovery stumbles on disappointing economic news
Stocks flat after manufacturing and home sales miss expectations
A strong rebound in US equity markets turned into a flat day as of 11:00 am after disappointing economic news.
The Chicago Purchasing Manager Index for February printed at 61.9, down from 65.7 in January (vs a consensus expectation of 64.10). Pending home sales had their biggest monthly fall since 2010, down 4.7% in January.
Yesterday new home sales for January showed a month-on-month fall of 7.8% (vs a consensus expectation of +3.5%), and nondefense capital goods orders excluding aircraft fell -0.2%, compared to expectations of a 0.3% gain.