Stocks appear on track to reverse Monday’s losses that were concentrated in a few high profile pockets, particularly the biotechs.
The housing and consumer confidence data coming out a little may shift the market’s trajectory, but the odds are high that U.S. stocks will follow the positive action in Europe. Stocks in Europe are set to finish higher despite a modestly weaker than expected German business confidence survey and weak markets in Asia.
On the data front, we will get the Case-Shiller home-price gauge for January and the February New home Sales numbers a little later. The Case-Shiller isn’t expected to be a market mover and expectations for new home sales remains muted due to the all-familiar weather related issue. The housing sector did very well in 2013, with prices and new home sales up in double-digits. The new year has gotten off to a slow start, but that loss of momentum is getting chalked up to the unusually lousy weather. The hope is that the sector will get its spring back as the weather improves.
The broad stocks market indexes have been all over the place in the first quarter of 2014, but don’t have much to show for all that volatility. The sell-off in the last few sessions in the more hotter segments of the market appear to be reflective of some nervousness, but overall sentiment still remains positive and the bias remains to the upside.