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US stock market daily report (March 21, 2013, Thursday)

Contributed by Millennium Traders

The U.S. government is facing a partial shut down after March 27. With a roll call of 318 yes votes and 109 no votes, the U.S. House of Representatives approved a Senate-passed bill, containing nearly $984 billion in funds for the federal government through September, removing the threat of a government shutdown next week. The bill also keeps in place the $85 billion in automatic cuts that began at the start of March, under the sequester. The bill goes next to the desk of President Barack Obama, for signature.

Threatening to withdraw an emergency liquidity lifeline to banks in Cyprus, the European Central Bank imposed a Monday deadline for a Cyprus bailout, for the country to ink a deal to rescue its financial sector. After the parliament in Cyprus rejected an unpopular proposal to tax bank deposits earlier this week, officials in Cyprus remain in talks with Russia for possible assistance while working on a plan to tap pension funds and other assets in an effort to raise funds. The tentative Cyprus proposal involves the nationalization of pension funds and the takeover of real-estate assets from the government and the Church of Cyprus. Averof Neophytou, deputy leader of the ruling Democratic Rally party, said there is a unanimous proposal to create a "solidarity fund" which is being assessed by legal experts and told reporters, "There is one goal, the saving of the country, shielding it from existing risks at the foundations of the government." European Party chief Demetris Syllouris said the proposal does not include a levy on bank deposits. Cyprus' Finance Minister Michalis Sarris said a means of finding a solution to the financial crisis, Cypriot and Russian officials have been discussing a wide range of options involving the potential sale of natural gas and banking assets.

U.S. Labor Department said Thursday, for week ended March 16, the number of people applying for new unemployment benefits edged up by 2,000 to 336,000. Over the past month, the average of new claims dropped by 7,500 to 339,750, striking the lowest level since February 2008. Continuing claims, which reflect the number of people already receiving benefits, for the week ended March 9, increased by 5,000 to a seasonally adjusted 3.05 million.

The Federal Housing Finance Agency reported on Thursday, using only mortgages backed by Fannie Mae and Freddie Mac, home prices climbed a seasonally adjusted 0.6% during January and increased 6.5% from the same period in 2012.

Conference Board's leading economic index grew 0.5% in February, marking the third straight month of gains, as reported on Thursday. "The U.S. economy is growing slowly now, and with this reading increases hope that it may pick up some momentum in the second half of the year. However, this latest report does not yet the capture the recent effects of sequestration, which could dampen the pickup in GDP," said Ken Goldstein, economist at The Conference Board.

The National Association of Realtors reported Thursday that existing-home sales rose 0.8% during February to a seasonally adjusted annual rate of 4.98 million, reaching the highest level seen since November 2009. Also during February, inventories of existing homes for sale rose 9.6% in February to 1.94 million. Compared to February 2012, the median existing-home sales price rose 11.6% to $173,600.

Philadelphia Federal Reserve said Thursday that for March, the bank's business-conditions index climbed to 2.0% from negative 12.5 in February. New orders climbed to 0.5% in March from negative 7.8 in February for the first positive reading in three months. The index for hiring plans increased to 2.7% in March from 0.9% in February.