Two pieces of economic data were released this morning. The Consumer Price Index rose more than expected 0.4% in May, the largest increase since February 2013. Economists were expecting a rise of 0.2%. Meanwhile, housing starts fell 6.5% in May to about 1 million units. The decline follows a 12.7% rise in April.
Things are getting hostile in Valeant Pharmaceuticals’ (VRX) attempt to takeover botox-maker Allergan (AGN). Valeant said today it will solicit Allergen shareholders to hold a meeting about the takeover. Meanwhile, Allergen released emails yesterday from Morgan Stanley (MS) showing the bank criticizing Valeant and its business strategy. Last week, Allergan rejected a sweetened $53 billion bid from Valeant and William Ackman’s Pershing Square Capital Management. Shares of Allergen closed up 0.73%, while Valeant closed up 0.95%.
Shares of SolarCity (SCTY), who designs and sells rooftop solar energy systems, soared after it announced it will buy solar panel manufacturer Silevo for an undisclosed amount. SolarCity, whose chairman is Elon Musk, said it is in discussions with New York officials to build one of the world's largest solar panel factories in the state. Meanwhile, shares, Tesla (TSLA), another Musk company, continued yesterday’s rise on reports about a possible collaboration with Nissan and BMW for a network of charging stations. Tesla closed up 3.14%. SolarCity closed up 17.58%.
Edward Lifesciences (EW) closed up 4.61% after the Food and Drug Administration approved its Edwards Sapien XT heart valve for treatment of severe symptomatic aortic stenonis. The valve had already been approved for use in Europe and Japan.
Expedia (EXPE) closed up 4.08% after analysts at Susquehanna upgraded shares of the travel site from neutral to positive and raised the target price from $79 to $90.
There’s more speculation surrounding Amazon’s (AMZN) mystery announcement scheduled for tomorrow at 1:00 p.m. Eastern. The Wall Street Journal reported that AT&T (T) will be the exclusive wireless carrier for Amazon’s rumored smartphone. Amazon closed down 0.61% and AT&T closed up 0.11%.
Tomorrow, FedEx (FDX) reports earnings before the bell. In the afternoon, the Federal Reserve releases its policy decision.