The benchmark 10-year Treasury was up 2/32, lowering the yield to 1.575%, while the dollar was rising 0.47%, according to the dollar index.

On the U.S. economic data front, the National Association of Home Builders Housing Market Index rose to 29 for June from a revised May reading of 28, reaching its highest since May 2007. Economists surveyed by Briefing.com expected a reading of 28. Still, a reading below 50 points to negative sentiment towards the housing market.

In corporate news, InterDigital ( IDCC) has reached an agreement to sell about 1,700 patents, mainly tied to 3G, LTE and 802.11 technologies, to Intel ( INTC) for $375 million. InterDigital also said it was doubling its stock buyback program to $200 million. The stock soared more than 27%.

Infinity Pharmaceuticals ( INFI) is ending the phase 2 trials of its saridegib experimental drug to treat bone and cartilage cancers, amid disappointing results. The shares lost more than 7%.

Microsoft ( MSFT) has a media event scheduled for Monday night at which the software giant could unveil a tablet computer developed in conjunction with Barnes & Noble ( BKS).

According to TechCrunch, Microsoft has a tablet/e-reader on tap and it will be entertainment-driven. Shares of Barnes and Noble dropped more than 2.5%.

PetSmart ( PETM) has raised its quarterly dividend to 16.5 cents a share from 14 cents, an increase of 18%. The company also announced a $525 million buyback plan. Shares rose 3.5%.

Facebook ( FB) said that its chief technology officer, Bret Taylor, was departing from social networking giant to work at another start-up. The stock rose nearly 5% after being in negative territory earlier in the day.


-- Written by Andrea Tse and Shanthi Bharatwaj in New York.

>To contact the writer of this article, click here: Andrea Tse.

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