It has been a huge morning for US economic news. Weekly initial jobless claims fell below 300K for the first time since May 2007, while headline inflation rose to 2.0%. meanwhile an incredibly strong Empire manufacturing survey indicates regions of the US that had been held back in the winter have roared into spring. Despite all the good news, initial post announcement gains have been quickly wiped out as the Dow Industrials have slipped back under 16,600 while the S&P 500 remains below 1,900 and the Nasdaq is back under 3,600 this morning. Why? Because falling unemployment and rising inflation support continued tapering and if this trend continues, the Fed could come under pressure to move up the start date for interest rate increases. Meanwhile in Europe today, major indices like the FTSE and Dax remain stuck just below key resistance levels. European GDP reports came in worse than expected for the most part, keeping the pressure on the ECB to do something, anything about the economy at next month’s meeting. This has kept pressure on EUR, which is also dragging down CHF and DKK along for the ride. USD and JPY are rallying again today as capital rotates back into defensive stances with only GBP and CAD able to keep pace. Corporate News Wal-Mart $1.10 vs street $1.15, sales $114.1B vs street $116.4B, guidance next Q $1.15-$1.25 vs street $1.28 Cisco Systems $0.51 vs street $0.48, guides next Q $0.51 to $0-.53 just above street $0.51 Peyto Exploration $0.41 vs street $0.45, raises dividend 25%. Economic News Economic reports released overnight and this morning include: NZ retail sales 0.7% vs street 0.9% Economic reports due later today include: US consumer prices 2.0% as expected vs previous 1.5% US core CPI inflation 1.8% vs street 1.7% US jobless claims 297K vs street 320K US Empire manufacturing 19.0 vs street 6.0 Canada manufacturing sales street (0.3%) Brazil retail sales street (0.5%) France GDP 0.8% vs street 0.9% Germany GDP 2.5% as expected vs previous 1.3% Italy GDP (0.5%) vs street (0.1%) vs previous (0.9%) Greece GDP (1.1%) vs street (1.3%) vs previous (2.3%) Eurozone GDP 0.9% vs street 1.1% vs previous 0.5% Eurozone consumer prices 0.7% as expected Eurozone core CPI inflation 1.0% as expected Norway trade balance NOK 31.6B vs previous NOK 31.4B Japan Q1 GDP 5.9% vs street 4.2% vs previous 0.7% NZ business PMI 55.2 vs previous 58.4 Singapore retail sales (3.9%) vs street (3.8%) Singapore retail ex auto (0.4%) vs street 0.2% Economic reports due later today include: 9:15 am EDT US industrial production street 0.0% 9:15 am EDT US manufacturing production street 0.3% 10:00 am EDT US Philadelphia Fed street 14.0 vs previous 16.6 10:00 am EDT US NAHB housing index street 49 vs previous 47 10:00 am EDT US Q1 mortgage delinquencies previous 6.4% 10:00 am EDT US Q1 mortgage foreclosures previous 2.9% 10:30 am EDT US natural gas street 98 BCF 6:10 pm EDT US FOMC Chair Yellen speaking