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Stocks Rise Pre-Bell as Traders Monitor Middle East Developments, Await Fresh Labor Market Data

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Stocks Rise Pre-Bell as Traders Monitor Middle East Developments, Await Fresh Labor Market Data

The benchmark US stock measures were pointing higher before the opening bell Monday as traders assess the latest developments in the Middle East and await fresh labor market data later in the week.

The S&P 500 and the Nasdaq rose 0.2% each in premarket activity, while the Dow Jones Industrial Average added 0.4%. The indexes finished Friday's trading session at new highs.

The US and Iran exchanged messages over the weekend on amendments to a draft agreement that would extend their ceasefire and reopen the Strait of Hormuz, Bloomberg News reported Monday. Iran's semi-official Tasnim news agency said Sunday that both sides continued to propose amendments, but could ultimately reject each other's proposals, according to the report.

In a social media post on Monday, Trump said that Iran "really wants to make a deal" and that it will be a "good one" for the US and its allies.

Israel's Prime Minister Benjamin Netanyahu on Monday ordered the Israeli military to attack targets in Beirut, Lebanon.

West Texas Intermediate crude oil gained 3.6% to $90.53 a barrel before the open, while Brent inclined 3.1% to $93.96.

Investors will be looking ahead to fresh labor market data later this week, beginning with the Job Openings and Labor Turnover Survey for April on Tuesday, followed by the ADP employment report for May on Wednesday. The Challenger Job Cut report and the government's nonfarm payrolls data, both for last month, are scheduled to be released on Thursday and Friday, respectively.

Treasury yields were trending upwards in premarket action, with the two-year rate increasing 2.3 basis points to 4.04% and the 10-year rate rising 1.4 basis points to 4.47%.

Monday's economic calendar has the final Purchasing Managers' manufacturing index for May at 9:45 am ET, followed by the Institute for Supply Management's manufacturing index for the same month at 10 am.

Shares of Nvidia (NVDA) advanced 2.2% pre-bell after the tech bellwether unveiled a new chip processor for Microsoft (MSFT) Windows laptops. Intel (INTC) dropped 5.1% while Adobe (ADBE) climbed 4.6%.

Taylor Morrison Home's (TMHC) stock jumped 22% after the homebuilder agreed to be acquired and taken private by multinational conglomerate Berkshire Hathaway (BRK.A, BRK.B) in an all-cash deal with an equity value of about $6.8 billion.

Broadcom (AVGO), Palo Alto Networks (PANW) and CrowdStrike (CRWD) are some of the major companies scheduled to report their latest financial results later this week. Hewlett Packard Enterprise (HPE) will release its earnings after the markets close Monday.

Gold fell 1.3% to $4,535 per troy ounce, while bitcoin decreased 1.1% to $72,601.

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Taiwan Factory Expansion Accelerates in May on Tech Goods
US Markets

Taiwan Factory Expansion Accelerates in May on Tech Goods

The precautionary stockpiling of goods by customers drove a solid expansion in production by Taiwan manufacturers in May, reported S&P Global on Monday.Taiwan's manufacturing purchasing managers index (PMI) rose to a seasonally adjusted 56.1 in May, up from 55.3 in April, and striking further above the 50-mark that separates growth from contraction, reported S&P Global, citing its monthly survey.Despite Persian Gulf turmoil, Taiwan's factory-sector business "conditions have now strengthened in each of the past six months," said S&P Global. "Helping to push up the headline PMI figure was a stronger increase in output during May. Taiwanese manufacturers recorded the steepest increase in production since July 2021."The uncertain global economy did not appear to hamper the trade-oriented Taiwan's prospects in May.Taiwan manufacturers reported that "new export orders meanwhile rose at a solid pace that matched that seen in April, with higher demand reported across key markets such as the US, Europe, Japan and mainland China," reported S&P Global.However, Taiwan factory managers in May were stretching to source inputs, and keep production floors supplied. "The latest survey pointed to greater strain on supply chains, with average lead times for inputs lengthening at... most pronounced pace since March 2022," said S&P Global. "There were frequent reports that shipping delays and product shortages amid the war in the Middle East had weighed on supplier performance."Higher operating and input costs triggered compensatory price hikes by Taiwanese industrialists in May. "In order to protect their margins, manufacturers in Taiwan raised their selling prices again in May," explained S&P Global.In addition, Taiwan factory managers, in part to hold down costs, did not add to payrolls in in May, reported S&P Global.There were some concerns that demand for Taiwan manufactured product could cool in months ahead, once customers have enough buffer stocks built up. The "current momentum could soon fade once inventories are replenished, especially if cost pressures continue to build," advised S&P Global.Nevertheless, Taiwan's manufacturers in May were confident in the 12-month outlook. "There were hopes that further increases in customer demand, particularly in areas such as electronics and AI, could help to boost production in the months ahead," said S&P Global.The Taiwan manufacturing PMI was compiled by S&P Global survey sent to 300 manufacturers from May 12 through May 20.

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Vietnam Manufacturing Sector Extends Expansion in May
US Markets

Vietnam Manufacturing Sector Extends Expansion in May

Cautionary stockpiling of product by customers helped drive Vietnam's manufacturing-sector expansion into its 11th-straight month, S&P Global reported Monday.The Vietnam manufacturing purchasing managers index (PMI) rose to 52.8 in May, up from 50.5 in April, and striking further above the 50-mark that separates growth from contraction, reported S&P Global, citing its monthly survey.The nation's manufacturing PMI in May reached its highest level since February, "just before the outbreak of war in the Middle East," due in part to "safety stock building among customers amid worries of the effects of a prolonged conflict in the Middle East."However, Vietnam's factory managers in May faced the sharpest rise in business operating costs since early 2011, due in part to fallout from the Persian Gulf turmoil. "Fuel, oil and transportation were the main drivers of higher input costs, according to respondents," advised S&P Global.Given recent undulations in demand and the global economy, and surplus capacity, Vietnam's industrial managers modestly reduced payrolls in May."Evidence of spare capacity was a factor behind a further reduction in manufacturing employment, which decreased for the third time in as many months. The rate of job shedding was only marginal, however," explained S&P Global.In addition, in May, there were some reservations about the sturdiness of demand for manufactured product.At "least some of the growth in May driven by stockpiling efforts amid the disruption caused by the war. There is some question therefore as to the sustainability of this upturn," said S&P Global.Nevertheless, Vietnam's factory managers were more confident in May about the next year than in preceding months, but the overall outlook was still soft. "Sentiment remained relatively muted, however, reflecting concerns about the ongoing impact of the war in the Middle East," said S&P Global.The Vietnam manufacturing PMI was compiled by S&P Global surveys sent to 400 manufacturers from May 12 through May 20.

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Taylor Morrison to Be Taken Private by Berkshire Hathaway in $6.8 Billion Deal
US Markets

Taylor Morrison to Be Taken Private by Berkshire Hathaway in $6.8 Billion Deal

Taylor Morrison Home (TMHC) shares jumped early Monday after the homebuilder agreed to be acquired and taken private by conglomerate Berkshire Hathaway (BRK.A, BRK.B) in an all-cash deal with an equity value of about $6.8 billion.Berkshire will pay $72.50 per share in cash for Taylor Morrison, representing a premium of roughly 24% to the company's closing price on Friday, the companies said in a joint statement Sunday. Taylor Morrison's stock climbed 20% in the most recent premarket activity.The deal has an enterprise value of about $8.5 billion, according to the companies."Berkshire Hathaway's long-term orientation is uniquely well-suited to the multi-year investment cycle of homebuilding, and this combination will allow us to scale the Taylor Morrison platform in ways that would not be possible as a standalone company," Taylor Morrison Chief Executive Sheryl Palmer said in a statement.The deal, which requires approval from Taylor Morrison's shareholders and clearance from regulators, is expected to complete in the second half. Following completion, the homebuilder will continue to be led by Palmer and will no longer trade on the New York stock exchange.In an emailed client note, Truist Securities said it likes Taylor Morrison's geographic mix and its long-term runway to high-teens return on equity. The brokerage believes the deal "could be coming near cyclical bottoms, barring further macroeconomic deterioration," assuming absorption rates will begin to turn later in 2026 and into the next year.In April, Taylor Morrison reported first-quarter adjusted earnings of $1.12 a share, down from $2.19 the year before. Overall revenue fell to $1.39 billion for the March quarter from nearly $1.9 billion in the prior-year period. At the time, the company said it expected to close about 11,000 homes for 2026."We are excited to welcome Taylor Morrison into Berkshire's portfolio," Berkshire Hathaway CEO Greg Abel said. "Over time, we expect to unify our site-built homebuilding operations into a combined platform."

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