US stocks kicked off new quarter on a strong note. Stocks ended with good gains on Monday, 01 July 2013. Stocks gained momentum after a survey of U.S. manufacturers showed more strength than forecast, adding to positive economic reports from Europe and Japan.
For the day, The Dow Jones Industrial Average finished up 65.36 points, or 0.4%, at 14,974.96. The Nasdaq Composite had its fifth day of consecutive gains, adding 31.24 points, or 0.9%, to close at 3,434.49. The S&P 500 advanced 8.68 points, or 0.5%, to close at 1,614.96.
On a sectoral basis, industrials and materials were the best performers, while defensive stocks such as telecoms and utilities closed lower.
Equities began the session amid upbeat overseas action as global markets appeared unconcerned about disappointing PMI data out of the Middle Kingdom. China's Manufacturing PMI declined to 50.10 from 50.80 (50.00 expected) while the HSBC Manufacturing PMI remained in contraction with a downtick to 48.2 from 48.3 (48.3 forecast).
Meanwhile, Manufacturing PMI reports out of Europe surprised to the upside, but most readings remained in contractionary territory. Great Britain was the standout with a reading of 52.5 (51.5 expected, 51.5 prior) while the Eurozone Manufacturing PMI improved to 48.8 from 48.7.
Reviewing today's economic data at Wall Street, the ISM Index increased to 50.9 in June from 49.0 in May, ending a one-month contraction. The consensus expected the index to increase to 50.5.
Separately, construction spending increased 0.5% in May after increasing a downwardly revised 0.1% (from 0.4%) in April. That was exactly what the consensus expected. Surprisingly, the entire gain in construction came from the public sector. After months of weakness, that sector increased 1.8% on strong overall growth.
Shares of Apple rose 3.2% after news the company has filed a trademark application for iWatch in Japan, increasing speculation Apple may be gearing up to introduce a new watch-like device.
Comex gold prices ended the U.S. day session sharply higher Monday, on a strong short-covering bounce and some bargain hunting after hitting a nearly three-year low on last Friday. Major rioting in Egypt also prompted a bit of safe-haven demand for gold. August gold was up $31.50 at $1,255.20 an ounce. September Comex silver last traded up $0.09 at $19.56 an ounce.
It will be a busy week of major economic data worldwide, despite the U.S. Independence holiday on Thursday, which will find many Americans taking much of the week off. The U.S. jobs report is out Friday morning, while the European Central Bank and Bank of England monthly meetings are on Thursday.
Advancing stocks outpaced decliners by 5 to 2 on both the New York Stock Exchange and the Nasdaq. Composite volume topped 3 billion shares on the NYSE and 1.5 billion shares on the Nasdaq by the close.
Indian ADRs ended mostly higher on Monday. In the IT space, Infosys was down 0.4% and Wipro was up 0.7%. In the Banking space, HDFC Bank was down 0.4% and ICICI Bank was up 1.7%. In other space, Tata Motors was up 3.7%, and Sterlite was up 1.03%.
Tomorrow, May factory orders will be released at 10:00 ET while automakers will be reporting their June sales throughout the day.
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