Factory Orders, Car Sales Lift Markets

Includes: DIA, QQQ, SPY
by: Midnight Trader
  • Dow Jones Industrial Average up 72.05 (+0.56%) at 12,943.44
  • S&P 500 up 8.51 (+0.62%) at 1,374.02
  • Nasdaq Composite Index up 24.85 (+0.84%) at 2,976.08


  • Hang Seng Index up 1.51%
  • Shanghai China Composite Index up 0.14%
  • FTSE 100 Index up 0.83%

U.S. stocks ended higher, with the S&P 500 Index finishing near a two-month high, following a report showing factory orders exceeded forecasts. Better-than-expected auto sales during June also bolstered confidence in the world's largest economy. Most industry sectors finished with moderate gains, although energy stocks jumped to a better than 2% rise as crude oil continued its volatile path in recent sessions. Other commodities also gained.

U.S. factories orders rose 0.7% in May for another gain in three months, easing concern that manufacturing is faltering. New orders climbed by $3.3 billion to $469 billion after a slightly revised drop of 0.7% in April - a decline previously reported as 0.6%. Excluding transportation, new orders rose 0.4%.

Auto-makers also reported better-than-expected June sales, led by a 15.5% increase for General Motors (NYSE:GM) and a 7.7% rise for Ford Motor Co (NYSE:F). Rival Toyota (NYSE:TM) posted a 60.6% rise, also beating expectations.

GM shares were ahead nearly 6% while F maintained a 2% advance. TM ADRs were ahead about 1%.

But stocks eased slightly in late trade after the International Monetary Fund forecast 2% growth for the U.S. economy this year and 2.25% growth in 2013, lowering its previous projections. The U.S. remains "subject to elevated downside risks, in light of financial strains in the euro area and uncertainty over domestic fiscal plans," the IMF said in a statement today. In an April report, the IMF forecast U.S. growth of 2.1% this year and 2.4% in 2013.

In other company news, Barclays plc (NYSE:BCS) chief executive Robert Diamond quit today with the embattled bank - which lost more than 2% - asserting Bank of England and Federal Reserve officials were well aware of the alleged manipulation of a key interest-rate by the bank and several of its rivals. The document was released ahead of Wednesday's appearance by Diamond in front of the British parliament.

U.S. crude was up $3.46 this afternoon, rising over 4%, to $87.21 a barrel in New York because of renewed fears of a military conflict with Iran. Iran reportedly again threatened to block a critical Persian Gulf shipping route in response to a European embargo of Iranian oil. Action by Iran would increase the risk for violence in the region, slowing tanker traffic.

August gold is up $24.30 to $1,622 an ounce while August silver is up 75 cents at $28.21 an ounce. July copper was 7 cents higher at $3.53.


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