U.S. stocks retreat on Syria concern as Treasuries, crops gain

‘Slow Recovery’

The S&P 500 advanced 0.5% last week, halting a two week slide. Bookings for goods meant to last at least three years decreased 7.3% last month, the most since August 2012, after a 3.9% gain in June, the Commerce Department said today. The median forecast of economists surveyed by Bloomberg called for a 4% drop.

“It’s another data point that indicates a slow recovery,” Eric Teal, who helps oversee $5 billion as the chief investment officer at First Citizens BancShares Inc. in Raleigh, North Carolina, said by phone. “This is all pointing towards less tapering by the Fed, which is probably bullish for the stock market in general.”

Among stocks moving today, Onyx Pharmaceuticals Inc. jumped 5.6% after Amgen Inc. agreed to acquire the cancer- treatment developer in a $10.4 billion transaction. Tyson Foods Inc., the largest U.S. meat processor, fell 7.1% after Bank of America Corp. analysts cut their rating on the stock.

Facebook Inc. rallied for a third day, gaining 1.7% and sending its market value above $100 billion amid optimism the world’s largest social network can bolster sales from mobile advertising.

Rising Valuations

Price gains of stocks in the S&P 500 are outpacing profits by the fastest rate in 14 years as the bull market extends beyond the average length of rallies since 1946. The benchmark gauge for U.S. equities has risen 14% relative to income over the past 12 months to 16 times earnings, according to data compiled by Bloomberg. Valuations last climbed this fast in the final year of the 1990s technology bubble, just before the index began a 49% tumble.

About two shares declined for each that gained in the Stoxx Europe 600 Index, while the gauge closed little changed amid volume 57% lower than the 30-day average. U.K. markets were shut for a holiday.

Royal KPN NV increased 3% in Amsterdam after winning the support of minority shareholder America Movil SAB for the sale of its German business to Telefonica Deutschland Holding AG after the acquirer agreed to sweeten its bid.

The MSCI Emerging Markets Index was little changed after slumping 2.7% last week. About $1.4 trillion has been erased from the value of emerging-market equities since Bernanke said May 22 that policy makers could scale back bond buying.

Soybeans gained 4.6% and corn rallied 6.5%.

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