Major indices rebounded from pre-market losses but are currently mixed.

Following the FOMC meeting yesterday, the Ten-Year Treasury Yield (TNX) moved below 4.3% and is continuing lower, down 2.1 basis points.

Seven sectors are moving higher, with Financials (XLF) and Communication Services (XLC) leading the way. Consumer Staples (XLP) is the laggard, but only declining marginally.

Economic Data

Conference Board’s Leading Economic index fell for its third consecutive month, reporting the largest drop since October.

Existing home sales for February rose 4.2% m/m to a seasonally adjusted annual rate of 4.26M, above last month’s 4.09M and above the forecasted decline to 3.95M. Gains in the single-family market helped offset the decline in condos and co-op. Mortgage applications have moved up due to mortgage rates dropping, but home owner optimism is not.

As a result, homebuilders are getting a boost today.

Darden Restaurants (DRI) is making an impressive reversal today after reporting earnings, showing signals we are looking for in broader market turns.

The company announced the acquisition of Chuy’s, a tex mex chain, as well as an expanded partnership for food delivery with Uber (UBER). Additionally, they signaled that middle and high income consumers are still seeing resilience, which may signal a broader market turn.

"We still think that consumers want to splurge on something, and they splurge on things that they get a great value for and they get a great experience on." - Rick Cardenas, CEO