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Good morning. Here's what you need to know.
- Markets in Asia were mostly lower in overnight trading. The Japanese Nikkei fell 0.3% while the Shanghai Composite dropped 2.6%. European markets are higher across the board, with Spain leading the way, currently up 1.6%. In the United States, futures point to an unchanged open.
- HSBC's flash China manufacturing PMI fell to 50.5 from last month's 51.6 reading, missing expectations of a tick down to 51.5. Any number over 50 indicates expansion, so this latest reading indicates that manufacturing activity just barely continues to grow.
- The German manufacturing PMI fell to 47.9 in April from last month's 49 reading, indicating an accelerating pace of contraction in Germany's manufacturing sector. French manufacturing PMI rose to 44.4, ahead of estimates for a tick up to 44.1 from last month's 44 reading. While the positive surprise is welcome, the numbers still suggest a deep contraction in French manufacturing.
- According to the latest polling, Italy's center-left party, which came out ahead in national elections several weeks ago, has now fallen into third place, behind Silvio Berlusconi's center-right coalition and Beppe Grillo's anti-establishment 5-Star Movement. The center-left party has suffered significant setbacks as it failed to form a government in the wake of the elections. Last week, its leader, Pier Luigi Bersani, resigned.
- Netflix reported first quarter earnings that exceeded analysts' consensus estimates, while revenues were right in line with expectations. The company added 3 million new subscribers in the quarter. Shares rose 24% in after-hours trading.
- Coach is expected to report earnings of $0.81 per share and revenues of $1.18 billion this morning before the opening bell. Johnson Controls, also out this morning, is expected to report earnings of $0.42 per share on revenues of $10.48 billion.
- The first economic data release in the United States is Markit's flash PMI reading for April, due out at 8:58 AM ET. Economists expect the headline index to moderate to 53.9 from last month's 54.6 reading, indicating a slowing yet robust pace of expansion in American manufacturing this month.
- Released immediately thereafter at 9 AM is the February House Price Index. Economists predict that house prices rose 0.7% in February after advancing 0.6% in January.
- March new home sales figures are released at 10 AM. Economists predict sales rose 1.2% from the previous month to a seasonally adjusted annual rate of 416,000 units after registering a 4.6% decline in sales in February.
- The Richmond Fed's monthly index of regional manufacturing conditions is also out at 10 AM. Economists expect the index to fall to 2 from last month's 3 reading. Follow all of the data LIVE on Business Insider >
- BONUS: Real Housewives of Atlanta star Porsha Stewart says she first found out about her divorce from former NFL quarterback Kordell Stewart on Twitter.
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