Bloomberg News

U.S. Stocks Extend Gains After Report on American Manufacturing

July 01, 2011

July 1 (Bloomberg) -- U.S. stocks extended gains, with benchmark indexes poised for the biggest weekly rise in a year, amid an unexpected pickup in American manufacturing growth.

The Standard & Poor’s 500 Index rose 0.6 percent to 1,328.17 at 10:03 a.m. in New York. The gauge rallied 4.1 percent this week through yesterday. The Dow Jones Industrial Average gained 91.61 points, or 0.7 percent, to 12,505.95.

The Institute for Supply Management’s factory index unexpectedly rose to 55.3 in June from 53.5 the prior month, the Tempe, Arizona-based group said today. Economists projected the gauge would drop to 52, according to the median forecast in a Bloomberg News survey. Estimates of the 77 economists ranged from 49 to 55.

The S&P 500 fell 1.8 percent in June, spurring the first quarterly loss in a year, on concern about Europe’s debt crisis and weaker-than-expected economic data. The index was still up 5 percent in 2011 through yesterday as government stimulus measures, takeovers and higher-than-estimated corporate earnings lifted investors’ confidence.

To contact the editor responsible for this story: Joanna Ossinger at jossinger@bloomberg.net


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