Early this morning, investors are focused overseas, with the European Central Bank's benchmark interest rate decision coming later this morning and China again showing slower economic growth. China's GDP rose 7% for the three months ending in March, which was in-line with expectations but also the weakest rate since the first quarter of 2009 and lower than last quarter's 7.3% growth. Investors expect further economic stimulus from China's central bank in the near future.
Yesterday's rumors are today's facts as Nokia (NOK) has agreed to buy Alcatel Lucent (ALU) for $16.6 billion in an all-stock deal which actually values shares of Alcatel 8% below their most recent close. The company sees the deal closing within a year.
In tech land, Intel (INTC) is making waves after it posted first quarter results in-line with its lowered forecast from a month ago, and offered in-line second quarter guidance, but lowered its capital expenditure guidance to $8.7 billion from $10 billion, which should lead to greater free cash flow.
On the domestic front, President Obama is giving into pressure from both sides of the aisle that will give Congress a say on approving the Iranian nuclear deal. Today's domestic economic calendar includes: MBA Mortgage Applications, April 10 at 7 a.m. ET, (prior 0.4%), the Empire Manufacturing for April at 8:30 a.m. (consensus is looking for 7.17) March Industrial Production at 9:15 a.m. with consensus calling for -0.3%, the NAHB Housing Market Index for April at 10 a.m. with consensus at 55, and the Fed releases the Beige Book at 2 p.m.
Notable earnings reports today include, Bank of America (BAC), Delta Air Lines (DAL) Charles Schwab (SCHW), SanDisk (SNDK) and Netflix (NFLX).