0) The dollar was weaker across the board. Treasury prices were little changed. Oil futures were off slightly near $49 a barrel in New York. Gold climbed back above $900 an ounce.
1) Apple and Ebay results are good on positive side
2) New economic data were also weak. New U.S. claims for state unemployment benefits rose last week and the total number of people drawing benefits surged to a record level. Initial claims for state jobless benefits grew 27,000 to 640,000 in the week ended April 18. The report was in line with analysts' expectations.
3)The National Association of Realtors reported a surprisingly large decline in sales of existing homes, with activity down 3% in March. Sales had ticked up in February, inspiring hope that one of the biggest drags on the economy and the banking system was easing.
4)Traders said the results of the stress tests also loom large, with some participants bracing for a period of swirling rumor and leaks during the lag time between Friday's private briefings and May 4's public release.
"What good can come of this whole thing, I don't know," said Doreen M. Mogavero, president and chief executive of Mogavero, Lee & Co., a New York Stock Exchange member firm.
As a trader, Mogavero said she would prefer to learn about the state of the banks through quarterly earnings statements, balance sheets, and other standard disclosures rather than a one-time test.
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Among financial bellwethers on Thursday, SunTrust Banks swung to a $714.8 million first-quarter loss, hurt by real-estate and mortgage investments and "recession-related costs" as it boosted reserves for bad loans. Fifth Third Bancorp also swung to a loss because of provisions for loan losses.
Regional banks are in a worse position than their Wall Street rivals at this stage in the recession because they depend on mortgage and commercial lending and credit quality, said Jeff Morris, vice president at Standard Life Investments. The government efforts to gin up securitization markets and offer leeway on "mark-to-market" accounting is little help to these banks.
