Dow, S&P end at records in fireworks before the Fourth

NEW YORK Tue Jul 1, 2014 5:15pm EDT

1 of 2. Traders work on the floor of the New York Stock Exchange June 24, 2014.

Credit: Reuters/Brendan McDermid

NEW YORK (Reuters) - The Dow and the S&P 500 closed at record highs on Tuesday as manufacturing activity picked up in the United States and Asia and increased optimism about the global economy's health.

The blue-chip Dow Jones industrial average came close to the 17,000 milestone in early afternoon trading, rising slightly over 1 percent to 16,998.70. The rally - led by IBM (IBM.N), up 2.8 percent at $186.35, and Visa Inc (V.N), up 1.7 percent at $214.25 - marked the first trading day of both the third quarter and the second half of 2014. The U.S. stock market will be closed on Friday for the Independence Day holiday on the Fourth of July.

Financial data firm Markit said its final U.S. Manufacturing Purchasing Managers Index rose to 57.3 in June, the highest since May 2010, although it was slightly lower than the preliminary read of 57.5.

A report from the Institute for Supply Management showed its index of national factory activity was at 55.3, little changed from May's 55.4 reading.

"The basic message is that it's pretty much the same level as May so that's very positive news for the U.S. manufacturing," said Anthony Karydakis, chief economic strategist at Miller Tabak in New York.

The Dow Jones industrial average .DJI rose 129.47 points or 0.77 percent, to end at 16,956.07. The S&P 500 .SPX gained 13.09 points or 0.67 percent, to 1,973.32. The Nasdaq Composite .IXIC shot up 50.47 points or 1.14 percent, to 4,458.65.

Shares of Netflix Inc (NFLX.O) rose 7.4 percent to $473.10 after Goldman Sachs raised its rating on the streaming video company's shares to "buy" from "neutral", according to theflyonthewall.com.

Twitter (TWTR.N) shares jumped 2.6 percent to $42.05 on news that a former Goldman Sachs (GS.N) executive would become the company's new chief financial officer while current CFO Mike Gupta will become senior vice president of strategic investments.

Shares of credit and debit card companies rose after Elvira Nabiullina, the chairwoman of Russia's central bank, said Russia may reduce pledges imposed on MasterCard and Visa if they find local processing partners. MasterCard shares (MA.N) climbed 2.8 percent to $75.53.

Positive data from Asia helped buoy investors' confidence in the strength of the global economy, including China's final reading of the HSBC/Markit purchasing managers' index (PMI) for June, which rose to 50.7 from May's 49.4.

Manufacturing in Japan, the world's third-biggest economy, also picked up in June, fueled by improving demand at home. Growth in the euro zone, however, faltered as Germany, the region's top economy, slowed.

About 5.84 billion shares changed hands on U.S. exchanges, in line with last month's average of about 5.8 billion, according to data from BATS Global Markets.

Advancers outnumbered decliners on the New York Stock Exchange by a ratio of about 2 to 1, while on the Nasdaq, nearly three stocks rose for every one that fell.

(Editing by Bernadette Baum and Jan Paschal)

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Comments (3)
aunticcp wrote:
The only relations that the rest of the World should be having with the cruel CCP is trying to bring to trial the thousands of Communist Party members who have been and are still committing millions of human rights atrocities.The brutal Chinese Communist Party has murdered over fifty million of its own people since 1949, since 1999 it has been attempting the blood-thirsty genocide of the tens of millions of innocent Falun Gong who live in Mainland China. To this end, the heinous CCP is using torture,slavery, organ harvesting and murder. Because of corporate greed, these atrocities and millions of others have been kept from the Western people by the Western media. The weak United Nations even appointed the brutal CCP a seat on its Human Rights Council this year. Shameful. Thank you for your concern.

Jul 01, 2014 8:27am EDT  --  Report as abuse
icemankpj wrote:
i could not have said this any better.what a sad world we live in where ”money” ie; greed,is preponderate over human life.

Jul 01, 2014 9:55am EDT  --  Report as abuse
Duffminster wrote:
PMI and ISM both missed estimates and we had terrible news on China Yesterday but the financial media in large decided that “this data” is showing us that everything is great now, factories humming and the trends of Q1 are behind us. If you take away the seasonal adjustments in ISM things don’t look so good. According to an article at Zero Hedged entitled “Fooling All The Experts With Seasonal Adjustments, All Of The Time” …”…In reality, the US economy, as represented by actual New Orders surveys, is the weakest it has been since January. And to think- very soon everyone will be shocked, shocked, that Q2 GDP (and Q3, and Q4 and so on) was not nearly as wonderful as everyone had prayed it would be….”

As far as China, here is an excerpt from a Bloomberg article yesterday, entitled:
“Slowing China Economy Dims Profit Outlook to 2012 Low”

“…The most-actively traded Chinese companies in the U.S. are on pace to report the smallest profits in two years as growth in the world’s second-largest economy decelerates to the slowest since 1990.”

“…Earnings and sales projections are falling as economists surveyed by Bloomberg estimate China’s gross domestic product expansion will slow to 7.4 percent this year, the weakest pace in 24 years, after back-to-back annual increases of 7.7 percent….”

From June 22, 2014, Bloomberg:

“China Beige Book Shows Economy Slowing on Investment”
http://www.bloomberg.com/news/…

Strange how so few financial “journalists” are actually doing more than towing the same party line on these reports. Why not do some “investigative” work to see if readers are getting the whole story? I guess its the new age of journalism, where whatever the government and Wall Street say is the gospel and you can just use their report for “news.”

Jul 01, 2014 1:14pm EDT  --  Report as abuse
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