Both the DJIA and S&P500 are points away from recent all-time highs this morning. Trading volumes are lighter and the action has been pretty choppy. US and European government bond yields moved higher this morning, with the UST 10-year yield gaining more than seven basis points to trade 2.216%. As of writing, the DJIA and S&P500 are just below unchanged, while the Nasdaq is adding 0.12%.
The NAHB survey of homebuilder confidence slipped lower in May, dropping to 54 from 56 in April, and missed expectations. The report noted consumers are exhibiting caution and want to be on more stable financial footing before purchasing a home, while at the same time the component measuring future sales expectations has been tracking upward all year, mortgage rates remain low, and house prices are affordable. Homebuilders are by and large in positive territory this morning.
Endo International reached a deal to buy Par Pharmaceutical from private equity firm TPG Capital for about $8 billion, including debt. Endo's offer consists of about 18 million shares and $6.50 billion in cash. The deal is only the latest in a run of acquisitions by the name, including Auxilium Pharma back in January. With Par, Endo becomes the top-five global generic drugmaker. Par Pharmaceutical was acquired by TPG Capital for $1.9 billion in 2012.
***Looking Ahead***
- 15:00 (AR) Argentina Q1 Unemployment Rate: 7.5%e v 6.9% prior
- 17:00 (KR) South Korea Apr PPI Y/Y: No est v -3.7% prior
- 21:30 (AU) RBA May Minutes
- 23:00 (NZ) New Zealand Q1 2-Year Inflation Expectation
***Economic Data***
- (CL) Chile Q1 GDP Q/Q: 1.0% v 0.9%e; Y/Y: 2.4% v 2.2%e
- (CL) Chile Q1 Current Account Balance: $1.2B v $1.0Be
- (BE) Belgium Mar Trade Balance: -€0.1B v €0.9B prior
- (US) May NAHB Housing Market Index: 54 v 57e
[I]Contributed by Trade The News[/I]
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