US stocks rise on solid economic data
NEW YORK CITY—US stocks spent Monday in positive territory on generally strong manufacturing data, although leading indices closed well below their intraday highs.
The Dow Jones Industrial Average gained 65.36 (0.44 percent) at 14,974.96. The Dow rose as high as 15,083 earlier in the session.
The broad-based S&P 500 added 8.68 (0.54 percent) to 1,614.96, while the tech-rich Nasdaq Composite Index jumped 31.24 (0.92 percent) to 3,434.49.
Brent Schutte, a market strategist at BMO Private Bank, said the monthly Institute for Supply Management reading of US manufacturing activity was “pretty good.”
The ISM purchasing managers index rose to 50.9 in June from a contraction reading of 49.0 in May. At the same time, the ISM showed manufacturing employment contracted for the first time since September 2009.
“I don’t know if bad news is good news or good news is good news,” Schutte said. Markets “seem to be in this tug-of-war period.”
Cancer-drug developer Onyx Pharmaceuticals surged 51.3 percent after it rejected an unsolicited takeover bid from Amgen, potentially setting off a bidding war. Amgen fell 1.2 percent.
Celgene Corp., another biopharmaceutical company, rose 1.6 percent, while Gilead Sciences, a Celgene peer, added 0.8 percent. Both Celgene and Gilead have been mentioned as possible Onyx suitors.
Apple rose 3.2 percent after Raymond James upgraded the technology giant to “strong buy,” citing increased iPhone shipments and a belief that near-term trends will stabilize, according to Market Watch.
Online game developer Zynga rose 10.4 percent on reports that the company was set to appoint Microsoft executive Don Mattrick to a senior post. After the market closed, Zynga announced that Mattrick would become chief executive.
Electric car manufacturer Tesla jumped 9.2 percent to $117.18 after Jefferies raised its stock price target to $130 based on higher estimates of auto deliveries. “Despite the massive run in the stock…(Tesla) is one of the best growth stories in the market today,” Jefferies said.
Intuit, which provides financial management, tax and online banking services, rose 3.5 percent after announcing plans to divest its financial services division for $1 billion and to sell its health group.
Bond prices were mixed. The yield on the 10-year US Treasury was 2.49 percent, up from 2.48 percent Friday, while the 30-year slipped to 3.49 percent from 3.50 percent. Bond prices move inversely to yields.