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Macro View

The April New Home sales data coming out a little later could potentially divert attention from the ever-present Euro-zone drama, but odds are that we will have another trading session today devoted mostly to fretting about Greece.
 
Euro-zone leaders are meeting today in Brussels, where a host of potentially significant topics will be o the agenda. The clamor for more pro-growth measures and even the issuance of Eurobonds has been gaining momentum in recent days, particularly following the election of the new French president. But the Germans are unlikely to give in so easily at this stage after having resisted such calls for a long time.

Germany is justifiably skeptical that the impetus for structural reforms will weaken should countries like Italy and Spain are allowed what they perceive to be a free ride on the pristine German credit profile. I will be surprised if anything tangible comes out of today’s meeting.
 
On the home front, Dell’s (DELL) disappointing results after the close on Tuesday sets the stage for Hewlett-Packard’s (HPQ - Analyst Report) results later today. H-P is expected to announce major job cuts in another restructuring initiative, but the move may not be enough to turnaround the company’s fortunes.
 
Unlike PC makers, homebuilders appear to be enjoying the sunshine these days. We will get the April New Home sales a little later, but homebuilder Toll Brothers (TOL - Analyst Report) not only beat earnings expectations this morning, but had a lot of good things to say about the housing market as well.

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