There's a sign that the housing recovery gained momentum in the spring. The National Association of Realtors reported that the number of contracts signed to buy existing homes or pending home sales rose 6.1% in April. It was the biggest month-over-month jump in four years.
Meanwhile, a reading on manufacturing in the Chicago area came in weaker-than-expected. The Institute for Supply Management's Chicago purchasing managers index slipped to 62.6 in June from 65.5 in May.
General Motors (GM) stock closed down 0.87% after compensation expert Kenneth Feinberg announced GM is prepared to pay victims or families connected to the faulty ignition switch recall provided they can prove the defect caused the crash. GM claims that the ignition switch issue is linked to 13 deaths. Feinberg did not say how much GM would pay in total to settle claims, but said GM will offer at least $1 million to family members of victims. Claims can be submitted between Aug. 1 and Dec. 31, 2014.
In other corporate news, paint and coatings maker PPG Industries (PPG) is buying Consorcio Comex SA de CV for about $2.3 billion. The deal will help PPG expand its presence in Mexico and Central America. Shares of PPG closed up 2.99% on the news.
TreeHouse Foods (THS) shares ended the day up 0.23%. The food company is buying privately-held Flagstone Foods for $860 million in cash to give it a foothold in the healthy snacks sector.
American Apparel (APP) shares closed down 6.82% after the struggling retailer announced plans of a one year poison pill in an effort to prevent a takeover from ousted chairman and founder Dov Charney, who currently owns a 27% stake in the company.
MannKind (MNKD) closed up 9.60% after the company said the Food and Drug Administration approved its inhaled insulin treatment for those who suffer from Type 1 and Type 2 diabetes.
Bank of New York Mellon (BK) shares ended the day up 3.45%. Activist investor Nelson Peltz and his Trian Partners revealed in a filing with Securities and Exchange Commission that they had a $1.05 billion stake in the company.
Yahoo (YHOO) shares closed up 2.57% after Piper Jaffray upgraded the stock to “overweight “ from “neutral.” It also raised its price target on the stock to $43 from $37. The brokerage firm said that Yahoo's stake in Alibaba is not reflected in the company’s current stock price.
U.S. automakers roll out their monthly sales figures on Tuesday. Investors will also get a look at more manufacturing data.
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- Kenneth Feinberg