Stocks closed in the red, as investors weighed strong U.S. economic data against ongoing uncertainty about Greece's political situation. Housing starts jumped to an annual rate of 717,000 in April, from the revised level of 699,000 in March. Analysts had expected a rate of 680,000. Meanwhile, building permits fell to an annual rate of 715,000 in April, from the revised figure of 769,000 in March. Analysts expected permits to fall to 730,000. Minutes from the last FOMC meeting had several members saying further easing may be needed if the recovery loses traction. Tech stocks were weighed down by selling pressure in the chip sector, after a J.P. Morgan sounded a bearish tone on the group, downgrading KLA-Tencor, Lam Research and Novellus to underweight. Meanwhile, Micron Technology was up 2% after some brokers issued positive notes on the company’s expected merger with bankrupt Japanese chip maker Elpida, which is currently in negotiations. Facebook boosted the size of its IPO by 25%, seeking to raise up to $16 billion, according to an SEC filing. Implied volatility spiked to the 23 level on moderate trading volumes.
