Major indices opened lower, but began to bounce higher after the PCE report at 10 AM ET. Core PCE was flat M/M for March, down from a 0.4% increase in February and below estimates of a 0.1% increase. This may help to ease the stagflation narrative.

Headline PCE was down 0.04% M/M in March, bringing it to a 12-month rate down to 2.3% YoY and below 2.7% prior.

The Chicago PMI fell to 44.6 in April from 47.6 and slightly below forecasts of 45.5.

Pending home sales rose 6.1% M/M in March from a 2.1% increase in February and surpassed consensus of a 1% increase. Notably, the South region led the way rising 9.8% M/M, followed by a 4.9% gain in the Midwest region and a 4.8% gain in the West region. The only region to see a dip was the Northeast which declined by 0.5% M/M.

Consumer spending remained resilient in March while personal income rose.

Health Care (XLV) and Consumer Staples (XLP) are the only sectors in the green as investors look to defensive sectors. Energy (XLE) is the laggard, led lower by a dip in oil prices which are lower after Saudi Arabia reported they can tolerate low oil prices for a long period if necessary.

The focus is on Meta platforms (META) and Microsoft (MSFT) quarter results after the bell today.

Historically, Meta Platforms reaction has been mixed in recent quarters.

On the other hand, Microsoft  track record seems to be the most challenged.