The bull market in U.S. equities entered its fifth year this month. The S&P 500 has more than doubled from its bottom in 2009, driven by better-than-estimated corporate earnings and three rounds of bond purchases by the Fed. The S&P 500 rose to within two points of its 2007 record last week while the Dow reached an all-time high.
Homebuilders gained. Lennar advanced 1.3% to $42.10 and D.R. Horton Inc. climbed 1.2% to $24.53.
Electronic Arts advanced 1.8% to $19.05. The second- largest U.S. computer-game publisher ousted John Riccitiello as chief executive officer. Chairman Larry Probst, 63, who ran Electronic Arts until 2007, becomes executive chairman and will lead the management as the board seeks a new CEO, according to a statement.
The publisher of “Medal of Honor” and the multiplayer “Star Wars” also said that earnings for the current quarter may fall short of analysts’ estimates.
Boeing climbed 0.5% to $85.57. Ryanair agreed to buy 175 Boeing 737 jets worth $15.6 billion at list prices. The planes will be delivered by 2018.
AmerisourceBergen Corp. surged 6% to $51.21 and Walgreen Co. added 2.5% to $43.50. Walgreen, the largest U.S. drugstore chain, and Alliance Boots GmbH agreed to a long- term partnership with AmerisourceBergen, gaining the right to acquire a minority stake in the pharmaceutical services provider.
Cardinal Health Inc. dropped 7.4% to $42.70 after saying its pharmaceutical distribution contract with Walgreen won’t be renewed after it expires in August. Walgreen accounted for about 21% of Cardinal’s revenue in 2012.
Walgreen today also reported second-quarter earnings that topped analysts’ estimates.
Lululemon tumbled 4.7% to $62.81. The Canadian yoga- wear retailer said a shortage of a women’s pants line will have a “significant” effect on financial results and will lead to lower-than-forecast first-quarter revenue. Certain shipments of it’s black Luon pants are too sheer and don’t meet the company’s standards, impacting about 17% of all women’s pants in its stores, the company said.