Stocks drifted throughout the morning session as investors prepare for an onslaught of earnings this week. The market has moved in a narrow range in morning trading, crossing back and forth across the flat line several times, but the major averages are all in the green near noon. Oil prices have been lower all morning but they are off their lows of the session and are currently just below $68 a barrel. ECONOMIC EVENTS: In the U.S., Markit's preliminary April manufacturing PMI rose 0.9 points to 56.5, which was better than the expected 55.2 reading. Markit's flash services PMI came in at 54.4, topping the 54.1 consensus and leaving the composite PMI flash reading at 54.8. Existing home sales rose 1.1% to a rate of 5.60M units in March, beating expectations. The Chicago Fed national activity index fell to 0.10 in March from a revised reading of 0.98 for February. In Asia, Japan's flash manufacturing PMI ticked up to 53.3 in April from 53.1 in March. In Europe, the flash manufacturing PMI came in at 56, versus the consensus call of 56.1, the services PMI came in at 55, versus the Street at 54.6, and the composite PMI reading of 55.2 topped the consensus estimate of 54.8. COMPANY NEWS: Toymaker Hasbro (HAS), hampered by the liquidation of Toys "R" Us among other headwinds, reported first quarter adjusted earnings and revenue that missed already depressed expectations. Brian Goldner, Hasbro's chairman and CEO, said, "Hasbro brands are resonating with consumers and consumer takeaway is positive. However, as we discussed earlier in the year, our first quarter was expected to be difficult. We are working to put the near-term disruption from Toys "R" Us behind us. Our global retailers view this as an opportunity in a key consumer category and are partnering with Hasbro to develop growth plans for our brands." Hasbro shares initially reacted negatively, falling in pre-market trading, before rebounding to be up about 2% near midday. Rival toymaker Mattel (MAT), meanwhile, has advanced about 3% near noon. MAJOR MOVERS: Among the noteworthy gainers was McDermott (MDR), which gained 13% after it confirmed that it rejected an unsolicited takeover offer from Subsea 7. Also higher was The Stars Group (TSG), which gained 12% after it agreed to acquire Sky Betting & Gaming from CVC Capital Partners and Sky plc (SKYAY) in a cash and stock transaction valued at $4.7B. Among the notable losers was Chicago Bridge & Iron (CBI), which fell 12% after Subsea 7's rejected proposal to acquire the entire issued share capital of McDermott for $7 per share was subject to the termination of McDermott's pending transaction with CB&I. Also lower was Akorn (AKRX), which plunged 29% after Fresenius (FSNUY) terminated its agreement to acquire the company. Additionally, Prothena (PRTA) plummeted 69% after it discontinued development of NEOD001 for AL amyloidosis as the Phase 2b PRONTO study did not meet its primary or secondary endpoints. INDEXES: Near midday, the Dow was up 30.77, or 0.13%, to 24,493.71, the Nasdaq was up 35.22, or 0.49%, to 7,181.34, and the S&P 500 was up 9.37, or 0.35%, to 2,679.51.
