Factory report helps stocks
NEW YORK — Most major U.S. stock indexes rose Monday as banks continued to climb along with interest rates, and energy companies rallied again with oil prices. Betterthan-expected auto sales and a strong report on U.S. factories also boosted stocks.
Energy companies made large gains in Monday’s abbreviated trading session as oil prices rose for the eighth day in a row. Banks rose as bond yields and interest rates continued to rise. Companies that stand to benefit from faster economic growth, like industrial companies and basic materials makers, climbed after the Institute for Supply Management said U.S. manufacturing activity climbed in June to its highest level in almost three years.
“The market clearly liked that number,” said Scott Wren, senior global equity strategist for Wells Fargo Investment Institute. He said that economic reports over the last few months have been a bit disappointing, but “It’s still in line with expectations for modest GDP growth.”
U.S. factories have largely recovered from a slump in late 2015 and early 2016 caused by cutbacks in the energy industry and a strong dollar, which makes U.S. goods more expensive in foreign markets. Manufacturing employment began a sustained turnaround in December and enjoyed four additional months of job gains, only to have factories shed 1,000 workers in May.
Car companies reported their monthly sales on Monday, and while overall sales continued to slip, the stocks mostly traded higher as investors felt the results were reasonably strong.
The Russell 2000 index of smaller-company stocks added 11.32 points to finish at a record high of 1,426.68.
However, the Nasdaq composite lost 30.36 points to 6,110.06. That was a sixweek low, as tech companies have been slumping for almost a month.