-New home sales much stronger than expected
-Stocks down on Europe worries

Dow Jones Industrials: -1.18%
Nasdaq Comp.: -1.92%
S&P 500: -1.15%

US equity benchmarks are lower by 1.5% on average. That on lessened optimism as regards the outlook for any concrete results that might come out of this week´s European Union summit.

Also to watch out for, the US Supreme Court may rule as soon as today on President Obama´s initiative to revamp nation-wide health-care coverage, by extending it to at least 30 million Americans.

On the company front, Pfizer and Bristol-Myers Squibb are firmly in traders´ sights after failing to gain approval of their top experimental drug, the blood thinner Eliquis, from U.S. regulators who said they needed more data.

In other news, Linn Energy is buying $1bn in assets from British Petroleum.

Oppenheimer has upgraded Boeing to overweight, while Sandisk has raised its view on Sandisk to buy.

New home sales shot up by 7.6% month-on-month in May, reaching a 369,000 unit pace (Consensus: 347,000).

Sharp rise in Treasuries

10 year US Treasuries are now rising by 18/32 dollars, with yields at 1.61%.

Front month West Texas crude futures are now down by 1% to the $78.96/barrel mark in NYMEX trading.

AB