Stocks moved higher yesterday as the report on manufacturing data proved to be weaker than expected. Despite being a negative sign for the economy as a whole, investors see stability in the sense of government not reducing the stimulus bond-buying program. The President of Federal Reserve Bank of Atlanta said central bank officials are committed to record stimulus measures.
Dow Jones Industrial Index started the month with a gain of 0.9%, the S&P 500 rose 0.5% erasing earlier losses. Nasdaq also grew as little as 0.3%. Intel was of a help to Dow Jones and recorded a 3.95% gain after its stock were upgraded by FBR Capital Markets. Merck & Co., pharmaceutical company leader grew by 3.75% making it the second biggest rise in the average.
The manufacturing data provoked mixed reactions among the investors. The Institute of Supply Management showed manufacturing unexpectedly contracted in May. The contraction is expected to be fairly significant and gives government hints to keep stimulating economy. Many of the investors are now looking to the Fridays employment report as an important sign of Feds policy.
Looking at the corporate news among the high movers is Zynga lost 12.03% of their price share slipping to a $2.99 per share as company is reducing 18% of its workforce to reduce costs. Company also lowered their second quarter earnings forecast.
General Motors will replace H.J.Heinz in the S&P 500 as the food processing company has been acquired recently for the largest sum in the food industry.