News Summary

Returns from the bond market are now beating those from the equity market by the widest margin since 2001. The optimism with which investors had welcomed the year seems to have evaporated and they are now questioning the strength of recovery in the economy. According to senior investment officer Michael Collins of Prudential Investment Management Inc, “Equities are really volatile, global economic growth feels like it’s slowing a little bit, meanwhile inflation is coming down, and the Fed is on hold indefinitely." Pending home sales for the month of May fell 30% month/month to 77.6. This is far worse than the expected decline of 13%. The sales are 15.9% below the levels reached in the same month a year ago. According to NAR chief economist Lawrence Yun, “Consumers are rational and they rushed to meet the tax credit eligibility deadline in April. The sharp decline in contract signings in May is a natural result with similar low levels of sales activity anticipated in June.” According to Bloomberg, Ford Motor F may restart its dividends for the common stock holders as early as 2012. The company, which had been missing its dividend payout for its preferred stock for the past 14 months, finally reduced its debt liabilities by more than $4 billion yesterday. The company, however, needs to further reduce its debt, which amounts to roughly $27 billion, before it can resume its payouts. Read more from Benzinga's Markets.