US stocks rally on upbeat data; S&P hits record high

NEW YORK CITY, United States – US stocks rallied Thursday (Friday, August 2 in Manila) on strong economic data from China, Europe and the United States, pushing the S&P 500 to an all-time closing high.

The Dow Jones Industrial Average added 128.48 (0.83%) at 15,628.02.

The S&P 500-stock index, a broad measure of the markets, jumped 21.14 (1.25%) to a record close at 1,706.87.

And the tech-rich Nasdaq Composite Index shot up 49.37 (1.36%) to 3,675.74.

“The major averages settled near their highs as better-than-expected manufacturing PMI data out of China, the eurozone, and the US helped entice investors into bidding up global equities,” Briefing.com said in a market note.

Financials were in hot demand. On the Dow, Bank of America gained 2.4%, JPMorgan Chase was up 1.5% and American Express added 2.5%.

ExxonMobil was by far the Dow’s biggest laggard, falling 1.1% after earnings came in at $1.55 per share, well below the $1.90 expected by the market. The oil giant reported lower petroleum output and weaker refining margins.

Procter & Gamble rose 1.7% after besting earnings forecasts by two cents at 79 cents per share. Investors have cheered the return of AG Lafley, who spoke on an analyst conference call for the first time since coming back as chief executive.

US-traded shares of Anglo-Dutch oil giant Royal Dutch Shell plummeted 5.7% after it reported lower earnings that included a surprising $2.1 billion charge due to lowering the value of some North American shale oil properties.

Chesapeake Energy, a big producer of natural gas, jumped 7.1% after results bested expectations by a wide margin. Revenues came in at $4.7 billion, compared with forecasts of $3.2 billion. The company has boosted oil output to take advantage of higher crude prices.

July auto sales that were the best since 2006 helped automakers. General Motors surged 1.7% and Ford gained 1.8%.

CBS rose 3.9% after earnings bested expectations by 4 cents at 76 cents per share. Revenues from content licensing and advertising grew.

Retailer JC Penney lost earlier gains and slipped 0.1% after denying a report that commercial lender CIT had halted deliveries to Penney stores. The stock had fallen 10.2% Wednesday following the story.

Bond prices dived. The yield on the 10-year US Treasury bonds jumped to 2.72% from 2.59% Wednesday, while the 30-year increased to 3.77% from 3.65%. Bond prices and yields move inversely. – Rappler.com