Updated: 05-23-2013

The Market at 04:15PM ET
Dow: -12.67… | Nasdaq: -3.88… | S&P: -4.84…
NASDAQ Vol: 1.74 bln… Adv: 1294… Dec: 1200…
NYSE Vol: 814.1 mln… Adv: 1251… Dec: 1753…

Moving the Market

Japan's Nikkei falls 7.3%

China's HSBC Flash Manufacturing PMI: 49.6 actual, 50.5 expected, 50.4 prior

Weekly initial claims: 340,000 actual, 348,000 Briefing.com consensus, 363,000 previous

March FHFA Housing Price Index: +0.7% actual, +0.6% prior

April new home sales: 454,000 actual, 425,000 Briefing.com consensus, 444,000 prior

Sector Watch
Strong: Technology, Telecom
Weak: Energy, Financials, Materials, Utilities

04:15PM ET
[BRIEFING.COM] The major averages ended modestly lower with the S&P 500 shedding 0.3%.

The benchmark average saw an opening loss of 1.2% after Japan's Nikkei tumbled 7.3%. Japanese stocks sold off amid continued volatility in Japanese Government Bond futures as the 10-yr yield spiked almost 16 basis points to 1.002 before the Bank of Japan's JPY2 trillion liquidity injection caused yields to retrace their gains.

Adding insult to injury was news out of China where the HSBC Flash Manufacturing PMI (49.6 actual, 50.5 consensus, 50.4 prior) fell below 50 for the first time in seven months.

All ten sectors began the session with sharp losses before the daylong rebound helped some groups return to yesterday's closing levels.

The utilities sector was the weakest performer, ending lower by 0.8% after a morning flash crash in American Electric Power (AEP 48.28, -0.31) and NextEra Energy (NEE 78.22, -0.94) briefly wiped out more than $33 billion in combined market capitalization.

Meanwhile, other defensively-oriented sectors outperformed the broader market with the telecom space registering a gain.

Cyclical groups were mixed throughout the day as technology and materials made a brief appearance in positive territory.

In the tech sector, major components like Apple (AAPL 442.14, +0.79), Oracle (ORCL 34.23, +0.11), and Cisco Systems (CSCO 23.51, +0.17) held up relatively well while Hewlett-Packard (HPQ 24.86, +3.63) surged 17.2% following its earnings beat on below-consensus revenue. In addition, the computer company guided third quarter earnings above analyst expectations and raised its dividend 10.0% to $0.1452.

Elsewhere, the relative strength in chemical producers overshadowed the weakness of steelmakers as the materials sector ended little changed. Gold miners also outperformed as the yellow metal rose 1.8% to $1391.30 per troy ounce. However, copper fell 1.9% to $3.318 per pound as disappointing Chinese data weighed.

While the Dow and Nasdaq made a couple intraday appearances in positive territory, the S&P was kept from seeing green by the weakness in banks. The financial sector settled lower by 0.6% as most majors registered losses. However, Dow component American Express (AXP 74.69, +0.25) outperformed its peers to end with a gain of 0.3%.

Today's opening losses caused the CBOE Volatility Index (VIX 14.12, +0.30) to spike to 15.11 before the near-term volatility measure returned near session lows as the broader market climbed off its worst levels of the day.

After a one-week shock, the initial claims level dropped back below 350,000. The initial claims level fell to 340,000 for the week ending May 18 from an upwardly revised 363,000 (from 360,000) for the week ending May 11. The Briefing.com consensus expected the initial claims level to fall to 348,000.

Separately, new home sales increased 2.3% to 454,000 in April after a sizable upward revision for March to 444,000 (from 417,000). The Briefing.com consensus pegged new home sales at 425,000.

Inventory levels remain depressed. There is only a 4.1-month supply at current sales rates. During a normal environment, homebuilders try to maintain a 6-month supply. That means construction growth should accelerate from current levels.

Tomorrow, April durable orders and durable orders ex-transportation will be reported at 8:30 ET.
03:30PM ET
[BRIEFING.COM]

• July crude oil traded in negative territory today following China's HSBC Flash Manufacturing PMI data that showed a first contractionary reading in seven months. The energy component dipped to a session low of $92.21 per barrel in morning action but managed to erase most of the earlier losses as prices rallied to a session high of $94.35 per barrel heading into the close. Crude oil settled just 0.1% lower at $94.14 per barrel.
• June natural gas opened floor trade in the red but popped into positive territory following inventory data that showed a build of 89 bcf when a build of 91-92 bcf was anticipated. It pulled-back slightly moments later but picked up momentum in afternoon action. It settled 1.9% higher at $4.26 per MMBtu, just below its session high of $4.27 per MMBtu.
• June gold rose for the first time in three sessions as a weaker dollar index and weak China's HSBC Flash Manufacturing PMI data helped support the yellow metal's advance. Although prices dipped to a session low of $1375.20 per ounce in late morning action, gold inched higher for the remainder of the session and settled with a 1.8% gain at $1391.70 per ounce.
• July silver spent most of today's pit trade in negative territory, touching a session low of $22.16 per ounce. It picked up momentum heading into afternoon action and managed to erase all of its earlier losses as it settled 0.1% higher at $22.50 per ounce.

03:00PM ET
[BRIEFING.COM] The major averages trade near their best levels of the day with the S&P 500 off by 0.1%.

In the foreign exchange market, the Dollar Index trades lower by 0.7% at 83.73. The index has weakened throughout the session as dollar weakness gave a boost to the Swiss franc and the Japanese yen.

The USDCHF pair is off by 115 pips at .9675 as trade reverses sharply off yesterday's 10-month high. The .9650 area is likely to receive significant attention as further weakness would set up a test of the important .9500 area.

Elsewhere, USDJPY trades lower by 130 pips at 101.85 as trade has held in a tight 15 pip range throughout the afternoon. Early selling probed the 101.00 area, but the level held as traders stepped in at the trendline off the April lows. Overnight action will be tracked closely as Japan looks to rebound from today's volatility. In addition, Bank of Japan Governor Haruhiko Kuroda is scheduled to speak tonight in Tokyo.
02:30PM ET
[BRIEFING.COM] The major averages have made another run at fresh session highs. The Dow has returned into positive territory while the Nasdaq trades with a loss of 0.1%. In addition, the S&P 500 is off by 0.3% as the weakness in financials continues to pressure the benchmark average.

Elsewhere, the health care sector has been able to shake off its early weakness as biotechnology displays some strength. The iShares Nasdaq Biotechnology ETF (IBB 181.47, +0.49) trades higher by 0.2%.
02:00PM ET
[BRIEFING.COM] Since notching its intraday high around 12:00 ET, the S&P 500 has spent the past two hours slipping back to its lows. Similarly, the Dow and Nasdaq have taken a few steps back from their best levels of the day.

Although a handful of cyclical groups have been able to make a brief appearance in the black, the continued weakness in financials has prevented the broader market from catching up to the outperformers.

The Dow Jones Transportation Average is one of those outperformers as the bellwether complex trades with a loss of 0.1%. While most index components register losses, it appears airlines have been cleared for takeoff with United Continental (UAL 34.12, +0.88) higher by 2.7%.
01:30PM ET
[BRIEFING.COM] The major averages hover near their recent levels with the S&P 500 leading to the downside (-0.6%). The Dow and Nasdaq trade ahead of the benchmark average, but the two indices have returned into the red after making a brief appearance in positive territory.

Cyclical sectors continue to pressure the broader market with financials down 1.0%.

Notably, gold futures have strengthened. The yellow metal trades higher by 1.8% at $1392.50.
01:00PM ET
[BRIEFING.COM] The S&P 500 trades lower by 0.3% after being down as much as 1.2% during the opening minutes.

Stocks opened sharply lower as the 7.3% plunge in the Nikkei contributed to the early selling. In addition, China's first contractionary reading of the HSBC Flash Manufacturing PMI in seven months (49.6 actual, 50.5 consensus, 50.4 prior) reminded investors of the persisting growth concerns.

The initial weakness caused an early slump in all ten sectors before the subsequent rebound helped most groups reclaim a portion of their losses. At midday, the utilities sector is the only group trading with a loss larger than 1.0%.

On the flip side, the rebound in technology has run the growth-oriented sector back to its unchanged line. Major components like Apple (AAPL 443.25, +1.90), Cisco Systems (CSCO 23.51, +0.17), and IBM (IBM 207.90, +0.91) all trade with gains between 0.4% and 0.7%. In addition, Hewlett-Packard (HPQ 24.12, +2.88) has jumped 13.6% after its upside guidance and dividend hike overshadowed the company's mixed earnings report.

The materials sector is the second-best performing cyclical group as the relative strength of chemical producers overshadows the weakness in steelmakers. Gold miners have displayed some strength as the yellow metal trades higher by 1.4% at $1387.00.

The S&P 500 has been kept from turning positive by the weakness in the influential financial sector. Most large components have spent the session in the red while the SPDR Financial Select Sector ETF (XLF 19.71, -0.12) trades lower by 0.6%.

Today's early losses caused the CBOE Volatility Index (VIX 14.18, +0.36) to spike to 15.11 before the near-term volatility measure slipped to session lows as the broader market climbed off its worst levels of the day.

After a one-week shock, the initial claims level dropped back below 350,000. The initial claims level fell to 340,000 for the week ending May 18 from an upwardly revised 363,000 (from 360,000) for the week ending May 11. The Briefing.com consensus expected the initial claims level to fall to 348,000.

Separately, new home sales increased 2.3% to 454,000 in April after a sizable upward revision for March to 444,000 (from 417,000). The Briefing.com consensus pegged new home sales at 425,000.

Inventory levels remain depressed. There is only a 4.1-month supply at current sales rates. During a normal environment, homebuilders try to maintain a 6-month supply. That means construction growth should accelerate from current levels.
12:35PM ET
[BRIEFING.COM] Equities have continued their steady rise from the opening lows. The Dow and Nasdaq have been able to climb into the black while the S&P 500 trades with a loss of 0.3%.

The technology sector was the first cyclical group to turn positive and recent action saw the materials sector make a brief appearance in the black. Chemical producers have displayed notable strength that has overshadowed the weakness in steelmakers. The Market Vectors Steel ETF (SLX 42.13, -0.48) is off by 1.1%.

Also of note, gold miners have outperformed as the yellow metal trades higher by 1.5% at $1387.60.
12:00PM ET
[BRIEFING.COM] The S&P 500 has climbed past its morning rebound high amid relative strength in technology.

The tech sector has crossed into positive territory as major components were able to shake off the early weakness. Apple (AAPL 443.35, +2.00), IBM (IBM 208.28, +1.29), and Cisco Systems (CSCO 23.54, +0.21) are all up between 0.4% and 0.9%.

Also of note, Hewlett-Packard (HPQ 24.12, +2.89) is soaring 13.6% after its upside guidance overshadowed the company's mixed earnings report.
11:30AM ET
[BRIEFING.COM] Recent action saw the major averages continue their rebound from session lows. The S&P 500 is off by 0.4% while the Dow has trimmed its loss to just 0.1%.

The Dow has been able to outperform the other two indices thanks to the relative strength of its major components. American Express (AXP 74.87, +0.43), Boeing (BA 99.27, +1.34), Chevron (CVX 125.47, +0.54), and IBM (IBM 207.96, +0.97) all trade with gains between 0.5% and 1.5%.

On the downside, Alcoa (AA 8.52, -0.17) is the weakest Dow component, but its underperformance has not had much effect on the price-weighted index.
11:00AM ET
[BRIEFING.COM] The major averages have climbed off their lows, but they continue to trade in the red. The S&P 500 is off by 0.7% with financials and utilities leading to the downside.

In the financial sector, major components trade lower across the board while the broader SPDR Financial Select Sector ETF (XLF 19.62, -0.20) sports a loss of 1.0%.

Elsewhere, the utilities space is lower by 2.1% amid weakness in all sector components.

With equities trading lower, the CBOE Volatility Index (VIX 14.49, +0.67) suggests an increase in near-term volatility expectations. The VIX is higher by 4.9% after notching its session-best at 15.11.
10:30AM ET
[BRIEFING.COM] Commodities are mostly lower this morning, despite weakness in the dollar index, given the broad market weakness., hurt by a crash in the Nikkei, which fell over 7%.

Crude oil futures have been in the red all day so far and fell as low as $92.21. June crude briefly rallied back above $93 and is now -1.5% at $92.89/barrel.

Natural gas has been modestly lower all morning and was sitting about 0.2% lower just ahead of the weekly inventory data. Following the data, June natural gas spiked to a new HoD and is now +0.6% at $4.21/MMBtu.

Precious metals have been mixed for most of the day with gold higher and silver lower. In current trade, June gold is +1.3% at $1384.60/oz, while July silver is -0.6% at $22.34/oz.
10:00AM ET
[BRIEFING.COM] Key indices continue to hover near their lows with the S&P 500 down 1.1%.

New home sales in April hit an annualized rate of 454,000, which was up from the March rate of 444,000, and better than the rate of 425,000 that had been broadly expected by the Briefing.com consensus.

The SPDR S&P Homebuilders ETF (XHB 31.35, -0.27) jumped to fresh highs in reaction to the data.
09:50AM ET
[BRIEFING.COM] The major averages hover near their lows as investors react to the 7.3% plunge in the Nikkei as well as disappointing economic data from China. The S&P 500 is down 1.0% as all ten sectors trade in the red. Growth-sensitive financials, energy and materials are the weakest groups in early action (down between 1.0% and 1.4%) while the telecom sector trades with a loss of 0.3%.

While most commodities register losses, gold futures trade higher by 1.3% at $1385.00.

In the Treasury market, the 10-yr yield is off by four basis points at 1.999%
09:15AM ET
[BRIEFING.COM] S&P futures vs fair value: -13.10. Nasdaq futures vs fair value: -13.30. The S&P 500 futures trade lower by 1.0% as the pre-market weakness sets the stage for a sharply lower open to the cash session. The bulk of the decline occurred overnight as Japan's Nikkei fell 7.3% while 10-yr JGB yields spiked to 1.00% before a JPY2 trillion liquidity injection by the Bank of Japan helped pressure the 10-yr yield back down to 0.840%.

In addition, investors received a reminder of shaky fundamentals as China's May HSBC Flash Manufacturing PMI fell to 49.60 (50.50 consensus) while Eurozone PMI readings improved but remained in contraction.

Looking at notable pre-market movers, Hewlett-Packard (HPQ 23.30, +2.07) is higher by 9.8% after its earnings beat on below-consensus revenue. Also of note, the computer company guided third quarter earnings above analyst expectations and raised its dividend 10.0% to $0.1452.

Today's economic data showed a decline in weekly claims as the claims level fell to 340,000 for the week ending May 18 from an upwardly revised 363,000 (from 360,000) for the week ending May 11. The Briefing.com consensus expected the initial claims level to fall to 348,000.

April new home sales will be reported at 10:00 ET.
09:01AM ET
[BRIEFING.COM] S&P futures vs fair value: -12.50. Nasdaq futures vs fair value: -12.00.

U.S. equity futures remain in the red as the S&P 500 futures trade lower by 0.9%.

The major Asian bourses saw significant weakness with a 7.3% plunge in Japan's Nikkei leading to the downside. Markets across the region were all down in excess of 1.0%, aside from Bursa Malaysia which lost 0.6%. The selling in Japan came after Japanese Government Bonds were halted following a one point drop in the 10-yr that ran its yield up 10 bps and above 1.00%. Strengthening of the yen exacerbated the selling as the Nikkei saw a drop of more than 1500 points from session highs to lows. The Bank of Japan moved to calm markets by injecting JPY2 trillion. Overshadowed by all of this was the disappointing Chinese HSBC Flash Manufacturing PMI, which fell into contraction for the first time since October with a 49.6 reading (50.5 expected, 50.4 previous). Data from the rest of the region saw Singapore's GDP slow to +0.2% quarter-over-quarter, Australia's MI Inflation Expectations tick up to 2.3%, Taiwan's industrial production fall 0.9% year-over-year, and Thailand's trade deficit widen to $2.85 billion ($0.87 billion previous).

• In Japan, the Nikkei tumbled 7.3% after gaining more than 1.5% early in the session. Real estate names saw heavy selling as Mitsui Fudosan and Sumitomo Realty & Development plunged 9.0% and 10.7%, respectively. Financials were also under significant pressure as Nomura Holdings tumbled 8.4% and Mitsubishi UFJ Finance gave up 9.6%.
• Hong Kong's Hang Seng finished lower by 2.5% to post its worst loss in seven weeks. Commodity related names were weak with aluminum maker Chalco losing 2.8% and Cnooc shedding 2.5%. Meanwhile, Lenovo outperformed with a gain of 2.8% after posting better than expected quarterly results.
• In China, the Shanghai Composite lost 1.2%, posting its biggest decline in a month. The weak PMI data weighed on Jiangxi Copper and Tongling Nonferrous Metals, which both gave up more than 2.5%. Elsewhere, automakers were pressured with Great Wall Auto losing 4.0%.

European indices trade lower following the significant decline in Japan. Regional economic data was plentiful as Eurozone Manufacturing and Services PMI surprised to the upside, but remained in contraction. The Manufacturing PMI rose to 47.8 from 46.7 (47.0 forecast) while the Services component increased to 47.5 from 47.0 (47.2 consensus). French Manufacturing PMI rose to 45.5 from 44.4 (44.8 consensus) while the Services component remained unchanged at 44.3 (44.5 forecast). In Germany, Manufacturing PMI climbed to 49.0 from 48.1 (48.5 consensus) while Services PMI held steady at 44.3 (44.5 expected). In the United Kingdom, first quarter growth of 0.3% was confirmed by the second estimate of GDP. In addition, business investment declined 0.4% quarter-over-quarter (+1.7% expected, -0.8% prior) while the Index of Services rose 0.6% (+0.7% expected, +0.1% previous). Elsewhere, Italian retail sales declined 0.3% (+0.3% forecast, -0.2% prior).

Also of note, Spain sold 3- and 5-yr debt in an auction which resulted in higher yields than the previous sale. The 3-yr note cleared the market at a yield of 2.442% (2.268% previous) while the 5-yr note sold with a yield of 3.001% (2.807% prior).

• In the United Kingdom, the FTSE is off by 1.8% amid weakness in miners and financials. Anglo American and Barclays are both down near 4.0%. On the upside, United Utilities Group trades higher by 1.0%.
• France's CAC trades down 2.5% as bank shares lead to the downside. Credit Agricole and Societe Generale trade with respective losses of 3.8% and 4.4%. Gemalto is the lone advancer in the CAC as the tech company trades higher by 1.2%.
• In Germany, the DAX is down 2.4% as financials weigh. Allianz, Commerzbank, and Deutsche Bank are all down between 2.4% and 3.4%.

In U.S. economic news, March Housing Price Index from the FHFA increased 1.3%, which follows a 0.9% increase observed during the prior month.

08:32AM ET
[BRIEFING.COM] S&P futures vs fair value: -13.10. Nasdaq futures vs fair value: -15.30. Equity futures continue to trade lower with the S&P 500 futures down 1.0%.

The latest weekly initial jobless claims count totaled 340,000, which was lower than the 348,000 that had been expected by the Briefing.com consensus. Today's tally was below the revised prior week count of 363,000. As for continuing claims, they fell to 2.912 million from 3.024 million.
08:00AM ET
[BRIEFING.COM] S&P futures vs fair value: -14.50. Nasdaq futures vs fair value: -18.80.

U.S. equity futures trade sharply lower with the S&P 500 futures down 1.0%. The overnight weakness follows a 7.3% plunge in Japan's Nikkei. Japanese stocks sold off amid continued volatility in Japanese Government Bond futures as the 10-yr yield spiked almost 16 basis points to 1.002 before retracing nearly all of its gains. In addition, the yen is notably stronger this morning with the USDJPY pair off by 140 pips at 101.80.

Looking at overnight developments:

• Asian markets finished lower across the board. In addition to the aforementioned 7.3% drop in the Nikkei, Hong Kong's Hang Seng fell 2.5% while China's Shanghai Composite lost 1.1%.
  • In regional economic data:
    • China's HSBC Manufacturing PMI entered contraction as the flash reading revealed a decline to 49.60 from the prior 50.40 (50.50 consensus).
    • Singaporean GDP rose 0.2% year-over-year to follow the prior increase of 1.5% (-0.5% consensus). In addition, industrial production increased 4.7% year-over-year after the prior decline of 3.8% (+1.1% forecast).
  • Looking at news:
    • After Japanese Government Bond yields spiked at the start of the session, the Bank of Japan intervened in the JGB market through a JPY2 trillion fund supplying operation.
    • In China, the HSBC flash Manufacturing PMI registered its first contractionary reading in seven months.
      
      
• European indices trade lower as the weakness carries over from the Asian session. The United Kingdom's FTSE is off by 1.7%, France's CAC is lower by 2.1%, while Germany's DAX and Italy's MIB both trade with losses near 2.3%.
  • Looking at economic data:
    • Eurozone Manufacturing and Services PMI surprised to the upside, but remained in contraction. The Manufacturing PMI rose to 47.8 from 46.7 (47.0 forecast) while the Services component increased to 47.5 from 47.0 (47.2 consensus).
    • French Manufacturing PMI rose to 45.5 from 44.4 (44.8 consensus) while the Services component remained unchanged at 44.3 (44.5 forecast).
    • In Germany, Manufacturing PMI climbed to 49.0 from 48.1 (48.5 consensus) while Services PMI held steady at 44.3 (44.5 expected).
    • Italian retail sales declined 0.3% (+0.3% forecast, -0.2% prior).
    • In the United Kingdom, first quarter growth of 0.3% was confirmed by the second estimate of GDP. In addition, business investment declined 0.4% quarter-over-quarter (+1.7% expected, -0.8% prior) while the Index of Services rose 0.6% (+0.7% expected, +0.1% previous).
  • In news:
    • Spain sold 3- and 5-yr debt in an auction which resulted in higher yields than the previous sale. The 3-yr note cleared the market at a yield of 2.442% (2.268% previous) while the 5-yr note sold with a yield of 3.001% (2.807% prior).

In U.S. corporate news:

• Dollar Tree (DLTR 49.00, +0.63) is higher by 1.3% after beating on earnings.
• Hewlett-Packard (HPQ 23.85, +2.62) is jumping 12.3% following its earnings beat on below-consensus revenue. In addition, the computer company guided third quarter earnings above analyst expectations and raised its dividend 10.0% to $0.1452.
• Workday (WDAY 68.00, +2.25) trades with a gain of 3.4% after beating on earnings and revenue.

Weekly initial claims will be reported at 8:30 ET while the March FHFA Housing Price Index and April new home sales will be released at 9:00 ET and 10:00 ET, respectively.

07:28AM ET
[BRIEFING.COM] S&P futures vs fair value: -11.00. Nasdaq futures vs fair value: -15.00.
07:28AM ET
[BRIEFING.COM] Nikkei...14483.98...-1143.30...-7.30%.  Hang Seng...22669.68...-591.40...-2.50%.
07:28AM ET
[BRIEFING.COM] FTSE...6721.83...-118.30...-1.70%.  DAX...8332.52...-198.70...-2.30%.
04:15PM ET
[BRIEFING.COM] The S&P 500 settled lower by 0.8% after early strength turned into afternoon weakness.

Today's headline event came in the form of Ben Bernanke's testimony before the Joint Economic Committee. During his remarks, Chairman Bernanke said premature tightening of monetary policy could stall the pace of recovery. This followed weeks of conflicting remarks from FOMC members, which sparked speculation regarding possible changes to the Fed's policy course.

However, those voices were echoed again by the afternoon release of the FOMC minutes from the May 1 meeting. The minutes indicated that some members expressed their willingness to slow asset purchases as early as June, provided economic conditions warrant the change.

Equities spiked at the start of Chairman Bernanke's testimony, but sellers made their presence known this afternoon as the major averages slumped to session lows.

While the afternoon decline occurred around the release of FOMC minutes, the move was isolated to the stock market as the 10-yr yield held near its session high of 2.04%, and the Dollar Index maintained its gain of 0.4% near 84.25.

The utilities and telecom sectors led to the downside as traders continued to dump income-oriented names. Including today's 1.6% decline, the utilities sector is down 5.0% month-to-date.

Elsewhere, the energy space lost 1.2% as crude oil declined 2.1%. The energy component ended at $94.18 per barrel, and weighed on the growth-sensitive sector.

Another commodity-related group, materials, ended among the laggards as steelmakers underperformed. The Market Vectors Steel ETF (SLX 42.61, -0.59) settled lower by 1.4%.

Cyclical sectors felt the brunt of the afternoon weakness. Similarly, the Dow Jones Transportation Average was unable to escape the selling as the bellwether complex settled lower by 1.6%.

Only consumer staples and health care were able to settle near yesterday's closing levels. The health care space was supported, in part, by Pfizer (PFE 29.30, +0.52) after the company announced plans to split off its animal health business Zoetis (ZTS 33.55, +0.51).

The CBOE Volatility Index (VIX 14.08, +0.71) ended near its highest level of the day as today's selloff increased near-term volatility expectations.

Reviewing today's economic data, existing home sales improved modestly in April, but still fell short of the 5.00 million barrier. Sales increased to 4.97 million from an upwardly revised 4.94 million (from 4.92 million) in March. The Briefing.com consensus expected home sales to increase to 4.98 million.

Also of note, the weekly MBA Mortgage Index fell 9.8% after declining 7.3% in the prior week.

Tomorrow, weekly initial claims will be reported at 8:30 ET while the March FHFA Housing Price Index and April new home sales will be released at 9:00 ET and 10:00 ET, respectively.