US, Chinese data lift S&P to record high

Comment on this story
WallStreet1234 REUTERS The US bourse is set to open higher as European leaders get ready to meet.

New York - The S&P 500 hit a record high on Tuesday after data showing US manufacturing accelerated even if at a slightly slower rate, and as China's factory sector expanded in June for the first time in six months.

The pace of growth in the US manufacturing sector slowed slightly in June but new orders accelerated to a six-month high, while Chinese manufacturing expanded last month for the first time since December.

Other data showed Detroit automakers topped expectations for US June sales.

Manufacturing in Japan, the world's third-biggest economy, also gained pace in June, fueled by improving demand at home; but euro zone growth faltered as Germany, the region's top economy, slowed.

“We got kind of decent numbers in China and ISM manufacturing looked pretty good, in the range of what was expected,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

“The slowdown we experienced in the first quarter isn't continuing so investors are happy to buy today.”

The Dow Jones industrial average rose 106.19 points or 0.63 percent, to 16,932.79, the S&P 500 gained 10.2 points or 0.52 percent, to 1,970.43 and the Nasdaq Composite added 44.27 points or 1 percent, to 4,452.45.

Twitter shares jumped 4.3 percent to $42.73 as former managing director in Goldman Sachs' technology, media and telecom investment banking will become the company's new chief financial officer while current CFO Mike Gupta will become senior vice president of strategic investments.

Amicus Therapeutics shares rose 19.2 percent to $3.98 after it said it was on track to report data from a late-stage trial of a genetic disorder drug, triggering speculation the data will be positive.

The stock was upgraded by both Janney Montgomery Scott and Leerink Swann.

Other research notes also affected stocks. Urban Outfitters fell 2.3 percent to $33.09 after a downgrade at Wedbush, and Netflix hit a record high of $465.47 after being upgraded at Goldman Sachs.

It was up 5.4 percent at $464.45. - Reuters

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines