US and European indices have seen choppy trading this morning as traders digest a torrent of major earnings. Note that sovereign yields are moving noticeably higher this morning with the 10-year bund up six bps and the US benchmark up five basis points as many begin to bet that the deflation scare is coming to an end. As of writing, DJIA is up 0.18%, the S&P500 is up 0.20% and the Nasdaq is up 0.12%.

March existing home sales bounced higher, improving on the flattish February numbers that had been impacted by the harsh winter weather. Sales of previously owned homes climbed to the highest level since September 2013, up 13.5% y/y and beating expectations. In other home builder news, DR Horton met expectations in its second quarter report and offered slightly improved FY guidance. Traders were evidently hoping for more and shares of DHI are off more than 5%, while other homebuilders are down a few percent. ...

According to the OpenSecrets.org Center for Responsive Politics, Google Inc. (GOOG-Nasdaq) set a company record for its lobbyist expense activity during Q1 2015, shelling out $5.5 million in Washington. The hefty expense during the first three months of 2015 helps Google retain its number nine position as one of the biggest spenders in Washington, laying out $16.8 million in lobbyist spending during 2014.

As Google fights antitrust battles at home and abroad, the tech giant extends its business into areas such as broadband connectivity and self-driving cars. The growth in investments in lobbying highlights Google's expanding presence in Washington. ...

US and European equity indices have given up some or all of their earlier gains as another round of nerves regarding Greece keeps risk appetite subdued. As of writing, the DJIA is down 0.42%, the S&P500 is flat and the Nasdaq is up 0.37%.

Bonds are giving up earlier gains after another round of Greece jitters during the European session. Overnight there were reports that the ECB was studying curbs on Greek bank support via the ELA amid growing opposition to use of the facility to prop up Greece financial sector. Comments by European officials dispelled any hope that resolution would arrive at Friday's Europgroup meeting. ...

When the President of the United States speaks, everyone listens. President Barack Obama said it’s time to think about changing the status of Marijuana under federal law. A huge vote of support from the most powerful man in the world. Obama’s stance on pot will cheer supporters of legalization whose efforts have put the legalization of Marijuana on a growing number of state ballots over recent years.

In an interview for CNN’s documentary that aired on April 19, 2015, “Weed 3: The Marijuana Revolution”, President Obama said an ideological adjustment is needed as far as decriminalizing marijuana is concerned. The President said, “You know, I think I’d have to take a look at the details, but I’m on record saying that not only do I think carefully prescribed medical use of marijuana may in fact be appropriate and we should follow the science as opposed to ideology on this issue. But I’m also on record as saying that the more we treat some of these issues related to drug abuse from a public-health model and not just from an incarceration model, the better off we’re going to be.” ...

European and US stocks are seeing a strong snapback from Friday's declines. The PBoC's RRR cut helped neutralize fears of a Chinese selloff after Friday's regulatory crackdown and some good US earnings helping US markets go higher. As of writing, the DJIA is up 1.34%, the S&P500 is up 1.02% and the Nasdaq is up 1.14%.

During the European session, there were news reports that EU Commissioner Juncker was looking at a new plan to prevent a Greek default, as negotiations were going nowhere. Later the Greek government issued a decree forcing local governments to transfer all their cash balances to the central bank ahead of another IMF payment as the nation's cash crunch worsens. With the situation looking dire, ECB member Constancio said that if a default happens, EU treaties do not allow a country to be expelled from the euro zone. ECB's Nowotny commented that there would be limited contagion from a Greek exit. EUR/USD remains right in the middle of its 6-week trading range between 1.05-1.10. ...

Ahead of the US session, Chinese regulators said they would change regulations in order to tamp down margin trading, which has sent European and US equities to their lows of the week. Meanwhile, the March CPI data suggests the long period of dormant US inflation may be coming to an end. As of writing, the DJIA is down 1.45%, the S&P500 is down 1.07% and the Nasdaq is off 1.46%. ...

European Commission Vice-President Andrus Ansip is expected to formally announce a new strategy for a widespread inquiry on May 6, 2015 to determine whether Internet platforms such as Google Inc. (GOOG-Nasdaq), Microsoft Corporation (MSFT-Nasdaq) and Yahoo! Inc. (YHOO-Nasdaq) are transparent enough in how they display search results. The inquiry will involve paid for links and advertisements as well as how platforms use the information they acquire. The inquiry is not an antitrust inquiry which could lead to fines of up to 10% of global sales for a company. In a draft of the strategy by the EU, for creating a digital single market, it says it will "carry out a comprehensive investigation and consultation on the role of platforms, including the growth of the sharing economy." ...

Spiking Greek government debt yields and CDS prices reflected renewed fears of a sovereign default by Greece and forced European equity indices lower this morning. Risk aversion sentiment carried through to US futures, while the mixed Philly Fed data didn't help. As of writing, the DJIA is flat, the S&P500 is down 0.07% and the Nasdaq is down 0.05%.

The headline April Philadelphia Fed regional factory survey was stronger than expected and better than the March reading. But like yesterday's weak Empire State survey, the new orders component was disappointing - falling more than three points to a borderline level of 0.7. The survey stated that indicators for activity and new orders both suggest expansion, but at a very modest pace. Taken together, the first two regional factory surveys suggest that manufacturing growth will remain subdued in April, reflecting export market headwinds. ...

According to the Centers for Disease Control and Prevention (CDC), cigarette use by high school students fell to record lows during 2014 while tobacco use among high school students grew to 24.6% from 22.9%.

On the other hand, electronic cigarette use by U.S. middle and high school students tripled during 2014. According to the CDC, e-cigarette use by high school students jumped to 13.4% in 2014 from 4.5% during 2013. Over the same period, cigarette use over the same period fell to 9.2% from 12.7% for the largest year-over-year decline in more than a decade. ...