Policy Watch

• The House of Representatives voted 307-116 to pass a bipartisan cyber security bill that would encourage private sector companies to share details of computer breaches with the government to strengthen federal efforts to prevent internet terrorism. The House bill would give companies liability protection if they share certain information about security threats with the government, but it would also require them to notify customers within 30 days if personal information is stolen. The legislation has bipartisan support in the Senate and is largely supported by the White House. Meanwhile, Secretary of Defense Ashton Carter is set to unveil a new cyber military strategy today while visiting Stanford University in which he will propose stronger ties between the Pentagon and Silicon Valley in developing a range of options for offensive cyber attacks against enemies of the United States. [WSJ]
• The Senate Finance Committee voted 20-6 to approve the “fast track” bill to enact the proposed 12-country Trans-Pacific Partnership for further debate in the full chamber. Democratic leaders in both the House and Senate do not support the entire bill as it stands, however, as they want greater safeguards to protect the Detroit auto industry and stipulations to prevent currency manipulation. Besides the fast track legislation, the Senate committee also approved three other bills that would provide a safety net for workers who lose their jobs to trade, renew programs that give preferential tariffs to developing countries, and facilitate customs processes and enforcement. Though the TPP has bipartisan support, amendments threaten its passage, including a currency manipulation provision endorsed by Sens. Rob Portman (R-OH) and Chuck Schumer (D-NY). [WSJ]

Economic Indicators & News

• New home sales in March missed market expectations, falling 11.4% to an annual rate of 481,000 versus anticipation for a 518,000 unit pace. The new home sales data released today echoes last week’s report of weak residential construction, though supply relative to sales rose sharply to 5.3 months from 4.6 months of inventory available due to lack of consumer demand. The majority of the drop in sales came from the South, where they were down 15.8%, followed by declines in the Northeast, West, and Midwest, respectively. The median price for a new home fell 1.5% to $277,400. On the year, new home sales are up 19.4%. [Census]
• The Markit Purchasing Manager’s Manufacturing Index fell to 54.2 in April’s initial reading from 55.3 in March, as weakness in export demand and soft foreign currencies have hurt orders for American goods. New export orders experienced their first decline since November 2014 while new orders overall are growing at their weakest rate since January. Price inflation of goods in the manufacturing sector eased to its lowest level in 11 months. [Markit]
• New jobless claims rose 0.34% to 295,000 in the week ending April 18, though the underlying trend of consecutive weeks with initial claims below 300,000 continued, indicating strength in the labor market. The 4-week moving average rose marginally to 284,500. Continued claims rose by 50,000 to 2.325 million. The market expectation was for 286,000 initial jobless claims last week. [Labor]