Housing, Manufacturing Data Lift Stocks

News at a Glance

• And Up Again: Stocks bounce back on economic data.
• Housing Surprise: Pending Home Sales rose in May.
• Manufacturing Improves: ISM Index inches forward.
• Oil Reverses: Crude prices dip despite inventory decline.

The Lowdown

Corporate News

• General Mills (GIS) said its fourth-quarter profit almost doubled as consumers snapped up brands like Cheerios and Betty Crocker. The company said earnings surged to $358.8 million, or $1.07 per share, for the three months ended May 31, up sharply from $185.2 million, or 53 cents per share, a year ago. Profit was 86 cents per share, excluding restructuring charges and other one-time items. Analysts had forecast earnings of 81 cents per share on sales of $3.69 billion. RELEASE
• Japanese investment bank Nomura (NMR) has reached an agreement to buy Citigroup's (C) trust banking unit for $197 million, the Japanese bank said in a statement Wednesday. Mitsubishi had tried to buy NikkoCiti Trust and Banking for $260 million in May, but the deal collapsed after Mistubishi failed in its bid to buy Citigroup's Japanese brokerage unit.
• Toyota (TM) had its credit rating cut to A+ from AA by Fitch on Wednesday because of concerns about the long-term health of the auto industry. Fitch affirmed Honda (HMC) and Nissan (NSANY) at A and BBB-, respectively.

The Economy

• Non-farm private employment fell by 473,000 in June, according to the Automatic Data Processing's ADP National Employment Report, released Wednesday morning. The June figure was an improvement over a May decline of 532,000. However, analysts had expected a decrease of 394,000 jobs. REPORT 
• Construction spending fell 0.9% in May, down from a revised 0.6% increase in April, the Commerce Department said. Economists had predicted construction would slip 0.6%. REPORT
• The Institute for Supply Management's Purchasing Manager's Index for the manufacturing sector rose to 44.8 in June, up from a May reading of 42.8. Analysts had expected a June reading of 44.9. A reading of below 50 indicates the sector is contracting. REPORT
• The Pending Home Sales Index rose 0.1% in May, slowing from a revised 6.7% increase in April, the National Association of Realtors said. Economists had expected the index to remain flat in May. REPORT
• Crude inventories fell by 3.7 million barrels last week, but inventories remain above the upper limit of the average range for this point in the year, the Energy Department said. REPORT