Equity markets are taking a breather today after posting two consecutive days of encouraging gains. Ultimately though, the Dow Jones Industrial Average is floating along only slightly lower today, but is kept from dipping further thanks to positive earnings from Boeing (BA). Contrarily, the NASDAQ is taking a larger dip today led by some struggling tech names and disappointing manufacturing data out of China. The preliminary Purchasing Manufacturing Index (PMI) data out of China came in at 48.3 for April, which was slightly higher than the 48.0 number posted in March, but this means that China's manufacturing sector remains at a contractionary level. After releasing these numbers many economists remain pessimistic that China will live up to its expectations of high growth, and so the markets are being dragged down today.

 New Homes Sales for the month of March were also released this morning; sales declined 14.5 percent to 384,000 from a revised 449,000 in February. Economists had expected the number of new home sales to increase to 455,000 for March, so this was a sizable disappointment. March marks the lowest month of new home sales since the 373,000 number posted in July 2013.

Winter weather conditions, which were unduly blamed for softness across the economy, again showed little effect in the new home sector - ultimately expectations remain higher going into spring. Inventories increased 3.2% in March to 193,000 from 187,000, which represents a 6.0 months' supply at the current sales rate. Consumers remain vigilant on what the Fed will do with interest rates, but this is a broader risk that many have already considered.

What goes up must come down; the market is coming back strong though some investors are taking profits on gains in the last two sessions.