10:40 AM New York – U.S. stocks extended gains for the second day this week and factory orders increased 2.1% in May. Ford Motor said auto sales in June increased 13% and Chrysler reported 9% increase in sales and record June sales since 2007.
Stocks on Wall Street extended gains for the second day after factory orders rose more than expected and durable goods orders were revised higher.
The S&P 500 index increased 0.3% or 5.49 to 1,620.44 and the Nasdaq Composite Index added 0.3% or 9.5 to 3,443.07.
Trading on exchanges is expected to below daily average volume as markets are scheduled to close early on Wednesday and remain closed on Thursday for the July 4th holiday.
Auto makers were in focus and Ford Motor said domestic auto sale rose 13.4% in June. Chrysler reported monthly sales increased 8%, the best June sales since 2007.
General Motors and Asian makers are expected to release auto sales later today and industry is expected to register at least 6% rise in sales in the month crossing sales of 1.3 million cars and trucks.
Factory Orders Rise 2.1%
U.S. factory orders increased 2.1% in May from 1.3% revised April orders, Commerce Department said today.
The orders for manufactured goods increased for the second month in a row, lifting hopes of improving conditions after a recent slowdown.
New orders rose in most categories and transportation orders jumped 10.9% but motor vehicles orders declined 2%. Orders excluding volatile transportation orders edged up 0.6% after rising 0.2% in April.
The department also revised durable goods orders to 3.7% from the previous estimate of 3.6% released last week.
European markets traded lower and construction industry expanded at a slower than expected pace in June.
In London, FTSE 100 index was nearly unchanged and in Frankfurt the DAX index decreased 0.6%. In Paris, the CAC 40 index decreased 0.4%.
Fresenius Medical Care plunged 8.5% in Frankfurt trading after the U.S. government agency proposed to lower payment for kidney dialysis centers as early as next year. The company relies for 10% of its revenue from the government run Medicare program.
Erste Group Bank AG decreased 2.5% after Austria’s largest lender placed 661 million euros of new shares to repay government aid and cut holdings of key shareholders.
Asian markets closed mixed and volatile Nikkei index in Japan closed higher 1.8%. Market indexes in Hong Kong declined 0.7% and in Mumbai gained 1.7%.
Several large industrial houses applied for banking license as the Reserve Bank of India opened banking market to new entrants after a decade. Billionaire Anil Ambani and Bajaj Group are some of the largest industrial houses sought new but stringent banking licenses as the government push for more bank branches in rural areas.
In other markets in the region, market index in Australian soared 2.6% and in Thailand added 0.9%. However, indexes in Jakarta fell 1.3% and in Kuala Lumpur edged down 0.2%.