Market Flash; Market Mixed

Breakfast Bites; While the anticipated liquidity injection by the ECB tomorrow to European banks had the markets trading in positive territory early on,  weak economic reports in the form of Durable Goods and Housing prices held it temporarily in check before the strongest consumer confidence number in a year hit coupled with strong manufacturing data from the Richmond Fed. The result??? Markets trading in a “should I stay or should I go” mode

  • January Durable Orders month over month -4.0% vs. -1.4% consensus; Prior revised to +3.2% from +3. This was the biggest drop in almost 3 years.

  • Home prices in 20 U.S. cities dropped more than forecast (-4%) in December to the lowest level since the housing crisis began in 2006

  • Tomorrow is when The European Central Bank will provide a second round of unlimited funds to support the euro area banks.

  • Warm weather and high gas prices kept consumers out of stores during the February 25 week, according to ICSC-Goldman whose same-store sales index fell a sizable 1.0% compared to the prior week

  • Confidence among U.S. Consumers rose in February to its highest level in a year (70.8 vs. consensus 63.0) showing Households may sustain spending and drive the economy

  • February Richmond Fed Factory Index at 20 vs. consensus 14

  • European  confidence in the euro area improved more than forecast in February adding to signs the economy is stabilizing.