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- Drug stocks continue to exhibit symptoms of a healthy bull market for the industry. Increased guidance from Merck and pre-market initiations at BMO Capital have sent the PPH to a multi-year high. MRK +7.5% WYE +1.7% SGP +2.9% BMY +2% AZN +3% LLY +1.6% The Dow has spent most of the morning in positive territory helped by McDonald??™s, which is higher by 1.3% after reporting global SSS up 8% and GE up 0.6% on its earnings report. SLM trades up 11% on renewed take out speculation. Overall rising bond yields around the world has muted equity index gains. Bund futures have made fresh session lows on more hawkish ECB chatter and talk of Japanese bond redemptions. US treasury futures broke lower after the April Univ. of Mich Confidence reading disclosed a 1-year inflation expectation of 3.3%. The reading rekindled inflation concern??™s that had been somewhat alleviated by a soft headline number and benign core PPI data released earlier. The US 10-year yields 4.757% while the BUND yield has risen to 4.234%. Overnight bearish sentiment continued in the US Dollar with the EUR/USD making fresh 2-year highs. The Greenback has rebounded some with the spike in yields following the U. Mich data. The USD/JPY traded as high as 119.50 while the EUR/JPY made another all time high after a wire headline suggested this weekends GY communiqu?© will not have any changes in currency language. Gold traded up more than 1% but gave some back as the Dollar pared some losses. Crude futures are $0.25 off overnight highs of $64.58 made following more reports of violence in Nigeria ahead of this weekend??™s election.
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