Stocks Hit 5-Year High on M&A Deals
The benchmark 10-year Treasury was off 7/32 to boost the yield to 2.033%. The dollar was down 0.19%, according to the U.S. dollar index.
The National Association of Home Builders' housing market index for February registered a read of 46, down from 47 the prior month and below the expected print of 48.
Cooper Howes, an economist at Barclays, said that, despite the decline, the index remains above its six-month average of 44 and is 18 points higher than its year-earlier level.
"We do not view the February drop as evidence of a slowing in the housing-market recovery and expect that other indicators such as starts, sales and prices will continue to push higher over the coming months," said Howes.About 78% of S&P 500 companies have reported fourth-quarter earnings, according to Thomson Reuters. Of the 388 companies in the S&P 500 that have reported earnings to date for the quarter, 70% have reported earnings above analysts' expectations, Thomson Reuters reported. The report said that 66% of companies have reported revenue above analysts views. OfficeMax and Office Depot are in advanced talks to merge, people familiar with the matter told The Wall Street Journal. Officemax shares soared 21% and Office Depot shares surged 9.4% on Tuesday. Staples (SPLS - Get Report) shares jumped 13% as the company's peers captured merger headlines. Sealed Air (SEE - Get Report) shares advanced 9% after the company posted better-than-expected quarterly results and said it is committed to increasing profitability and aggressively managing its cost structure. The company said it continues to operate in a challenging economic environment, particularly in Europe. Express Scripts ( ESRX) shares rose 2.6% after the pharmacy-benefit manager booked better-than-expected fourth-quarter earnings of $1.05 a share and stronger-than-anticipated sales, getting a boost from increased generic drugs usage and its purchase last year of Medco Health Solutions. Herbalife (HLF), at the center of a public fight between Carl Icahn and Bill Ackman, is expected to post fourth-quarter earnings Tuesday of $1.03 a share on revenue of $1.05 billion. Shares were up 2.6% on Tuesday. Medtronic (MDT) posted fiscal third-quarter profit of 93 cents a share on revenue of $4 billion, versus the average analyst expectation for profit of 91 cents a share on revenue of $4.03 billion. The company reiterated its fiscal full-year revenue outlook and earnings per share guidance. Shares fell 2.8%. Wynn Resorts ( WYNN) shares lost 2.1%. The casino operator got court approval to move ahead with a meeting this week to remove dissident shareholder Kuzuo Okada from its board. Sony ( SNE) ADRs popped 2.2% amid expectations that the company will reveal its PlayStation 4 this week. -- Written by Andrea Tse and Joe Deaux in New York >To contact the writer of this article, click here: Andrea Tse.
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