Stocks Gain Ground On ISM Figures

The New York Stock Exchange regained some ground on Tuesday, with a figure worse than expected in the ISM manufacturing index, soothing fears of a future interest rates hike by the Federal Reserve.

At the end of the morning, the Dow Jones had advanced 0.7% to 16,942.8 points, while the Nasdaq Composite moved 0.5% to 4,449.5 points.

The Institute for Supply Management (ISM) announced this morning that its index of manufacturing activity was at 55.3 in June, a figure lower than the estimates forecast who expected more around 55.8 level.

This indicator shows that the U.S. economy is still not over bought, and an intervention by the Fed – through a higher interest rate – is not yet necessary.

Published at the same time, construction spending in the U.S. rose 0.1% in May, again lower than the consensus which expected a figure closer to 0.5%.

As for stock quotes​​, Oracle advanced 0.5% after unveiling details of its bond issue of $10 billion, this is to finance the acquisition of Micros Systems.

HP gained 1.4% after having reached an agreement with two law firms representing disgruntled shareholders who had litigated in the case of the acquisition of Autonomy in 2011.

Ford was down 0.1% after announcing a 5.8% decline in sales in the United States in June, a worse than expected performance, while GM rose nearly 2% after sales domestic market that have pleasantly surprised in June, with a better-than-expected 1% yoy increase.

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Pete Southern

About Pete Southern

Pete is an active investor with knowledge of all sectors but his first love are IPO's. A failed day trader who now understands research. A love of economics and writing seen Pete begin to publish content for various finance blogs. Our main editor and collator of contributions, he is your point of contact via editorial at stockpricetoday.com

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