It’s been another volatile day so far.
Markets opened sharply lower, due to selling overseas and weak same store sales numbers from McDonald’s (MCD). US same store sales were up only 3.3% in the 4th quarter and flat in December (MCD 4Q Earnings Release).
McDonald’s shares are getting crushed, down almost 7% on big volume.
What seems to have turned things around was a really ugly Decmeber New Home Sales Report. New home sales came in at a seasonally adjusted annual rate of 604,000 – 41% below last December. The median home price was also off 10% from a year ago.
Markets seemed to bottom and turn around after the release of this report, possibly because they support the idea of a 50 point cut from the Fed on Wednesday (S&P 1 Day Chart).