Though investors aren't thrilled with AT&T's (T -3.3%) Q1 wireless numbers, Wells Fargo (Outperform) calls them "big time solid." The firm notes net adds and churn were better-than-expected, and thinks Q1 results suggest the telco's 2014 guidance is "quite achievable."
The seasonally adjusted new home sales pace of 384K in March is 14.5% below that of February and 13.3% lower than a year ago. It's the slowest pace since July, and 14.5% is the 3rd-largest decline in 20 years. The median sales price of $290K is up 12.6% Y/Y. The supply of new homes on the market is 6 months at the current sales pace, up from 5 months in February.
Core operating earnings +12% to $2.095B; margin 10.2% vs 9.9% a year earlier.
Boeing Commercial Airplanes revenues +19% to $12.74B; operating profit +23% to $1.5B, margin 11.8% vs 11.4%; deliveries 161 planes vs 137 planes. Booked 235 net orders, backlog over 5,100 airplanes valued at $374B.
Boeing Defense, Space & Security revenues -6% to $7.63B; operating earnings -6% to $778M, margin 10.2% vs 10.3%.
Increases 2014 core EPS guidance to $7.15-7.35 from $7.00-7.20 prior to reflect the benefit of a tax settlement that Boeing will recognize in Q2. Consensus is for $7.38. Expects revenue of $87.5-90.5B vs forecasts of $90.09B; deliveries of 715-725 commercial jets.
Asian stocks trade mixed and European shares are mainly lower, with a strong showing on Wall Street yesterday helping to boost sentiment, but with disappointing PMI data out of China and France dampening the mood.
Japan +1.1%, Hong Kong -1%, China -0.3%, India +0.5%.
Euro Stoxx 50 -0.3%, London flat, Paris -0.4%, Frankfurt -0.3%, Milan -0.2%, Madrid +0.2%.
The Bank of England's Monetary Policy Committee voted unanimously, as expected, to keep interest rates at 0.5% and against more quantitative easing at a meeting earlier this month, the minutes of the meeting show.
Meanwhile, the U.K.'s Public Sector Net Borrowing dropped to £4.86B in March from £7B in February and was well below consensus of £9.1B. (PR)
Eurozone flash manufacturing PMI has increased to 53.3 in April from 53 in March and topped consensus that was also 53.
Services has risen to a 34-month high of 53.1 from 52.2 and vs 52.4.
Composite output has climbed to a 35-month high of 54 from 53.1 and vs 53.1.
Manufacturing output has increased to 56.5 from 55.6.
The growth was led by Germany, while France stabilized.
The data indicates that eurozone GDP is on course to rise 0.5% in Q2 following 0.4% growth in Q1.
The bloc experienced a return to job creation, says Markit, suggesting that companies believe "that the recovery has legs and is looking increasingly sustainable." However, Markit warns of "growing fears that deflationary pressures are intensifying."
The euro rises further, having gained a boost from German PMI, and is +0.25% at $1.3839. (PR)
German flash manufacturing PMI has increased to 54.2 in April from 53.7 in March and topped consensus of 54.
Services has risen to 55 from 53 and vs 53.4.
Manufacturing output has climbed to 58.8 from 57.
Composite output has grown to to 56.3 from 54.3.
"A combination of increased activity, rising new orders and further employment growth across both the manufacturing and service sectors suggest companies will remain in expansion mode during the coming months," says Markit. The data indicates that "the economy is set to build on the foundation of last quarter's solid growth."
However, Markit warns that price data points to an "increasing risk of deflationary pressures."
The DAX is flat after being lower earlier, while the euro has recovered from prior losses, particularly after French PMI data, and is +0.05% at $1.3814. (PR)