US Stocks rally amid economic data

The US equity market finished session higher on Wednesday, 03 June 2020, as investors risk sentiments improved on slew of better than expected economic data and expectation that economic activity will improve with the ebbing of coronavirus infections and additional government stimulus. At closing bell, the Dow Jones Industrial Average advanced 527.24 points, or 2.1%, to 26,269.89. The S&P 500 - a gauge of US retirement and education savings accounts, rose 42.05 points, or 1.4%, to 3,112.87. The tech-heavy Nasdaq Composite Index added 74.54 points, or 0.8%, to 9,682.91.

Ten of the 11 primary S&P 500 sectors ended higher, with industrials and financials up 3.9 per cent and 3.8 per cent, respectively, leading the gains. Health care dipped 0.2 per cent, the only declining group.

 

ECONOMIC NEWS: US Factory Orders Nosedive In April- The Commerce Department released a report on Wednesday showing another nosedive in factory orders in the month of April, after reporting a steep drop in new orders for U.S. manufactured goods in the previous month. The Commerce Department said new orders plunged by 13 percent in April after plummeting by a revised 11 percent in March. The continued nosedive in factory orders was partly due to another steep drop in durable goods orders, which cratered by 17.7 percent in April after tumbling by 16.7 percent in March. The report showed orders for non-durable goods also plunged by 9 percent following a 5.4 percent slump in the previous month.

US ISM Service Sector Recovers But Stays In Contraction In May- US service sector activity continued to contract in the month of May, a report released by the Institute for Supply Management on Wednesday showed. The ISM said its non-manufacturing index rebounded to 45.4 in May after plunging to an eleven-year low of 41.8 in April. A reading below 50 still indicates a contraction in service sector activity. The bigger than expected increase by the headline index was partly due to a substantial rebound by the business activity index, which spiked to 41.0 in May from 26.0 in April. The new orders index also jumped to 41.9 in May from 32.9 in April, while the employment index rose to 31.8 from 30.0. The readings below 50 still indicate contraction.

Among Indian ADR, ICICI Bank rose 2.41% to $9.78, HDFC Bank 3.34% to $46.09, Vedanta 2.3% to $5.34, Tata Motors 3.03% to $6.81, and WNS Holdings 4.83% to $54.24, while Dr Reddys Labs declined 0.36% to $52.27, INFOSYS 1.17% to $9.27, and Wipro 0.89% to $3.36,

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