Late Session Surge Puts U.S. Indices Near All-Time Highs

U.S. stock indices finished slightly higher on Wednesday, continuing the choppy, two-sided trade that has been highlighted all week. Earnings were mixed, however, the markets caught a bid after the U.S. reported stronger than expected existing home sales data.

The Dow, S&P 500 and Russell 2000 Index remained within striking distance of new all-time highs, but the price action suggests that investors are waiting for some economic news or perhaps word from the Fed next week before taking prices higher.

The Nasdaq was within 15 points of its all-time closing high of 5,048.62. The Dow Jones Industrial Average held above 18,000 and briefly added 100 points in the last 40 minutes before the close. The S&P 500 was within 15 points of its all-time intraday high.

Housing was the main focus on Wednesday. Total mortgage application volume rose 2.3 percent week to week on a seasonally adjusted basis for the week-ending April 17^th, according to the Mortgage Bankers Association.

Existing home sales data for March beat expectations at 5.19 million. The report was expected to show an increase of just over 5.00 million.

Short-covering helped drive the GBP/USD higher on Wednesday. This may be an indication that perhaps the uncertainty over the upcoming election may be lifting. The Bank of England released data on its MPC Official Bank Rate Votes. The data showed that members voted unanimously to leave interest rates at historically low levels. The MPC Asset Purchase Facility Votes data also showed that members voted unanimously to leave stimulus at current levels.

The EUR/USD also rose on short-covering and the lack of fresh news regarding the negotiations between Greece and the Euro Group members. Italian Retail Sales fell by 0.2%. This missed the estimate of plus 0.1%. Euro Zone Consumer Confidence was -5 versus an estimate of -3.

In news affecting the New Zealand Dollar, the Visitor Arrivals report fell 3.6%. The Australian Dollar was flat after the release of the NAB Quarterly Business Confidence report. The report showed a reading of zero. Last month the reading was 2.

Japanese Flash Manufacturing PMI data came out at 49.7, below the estimate of 50.8. A reading below 50 indicates contraction. 

China reported its HSBC Flash Manufacturing PMI at 49.2. This was slightly below the estimate of 49.5.