US close: Stocks rally after ISM data

Date: Monday 02 Jul 2012

Following a sharp fall, US benchmarks trimmed early losses in afternoon trade; though markets were still cautious following the best month of June in more than a decade.

Dampening sentiment early on was the Institute of Supply Management (ISM) which said its US manufacturing purchasing managers' index (PMI) fell from 53.5% to a worse-than-expected 49.7% in June. The reading “indicat[ed] contraction in the manufacturing sector for the first time since July 2009, when the PMI registered 49.2%,” the ISM said.

Analysts at Barclays Capital said: “We believe the weakness in Europe is weighing on the manufacturing sector, but that increasing domestic demand is likely to keep the overall economy growing.”

In contrast, construction spending figures came in above forecasts, up 0.9% in May to a seasonally adjusted annual rate of $830bn, according to the Commerce Department. Analysts were predicting an increase of just 0.2%.

COMPANIES

Amylin Pharmaceuticals jumped after Bristol-Myers Squibb offered $31 per share in cash for the drugmaker, valuing the company at $5.3bn. The acquisition has been unanimously approved by both groups.

Semiconductor maker Micron Technology rose nearly 4% after announcing it would buy bust Japanese firm Elpida Memory. The deal will increase Micron’s chip making capacity.

Electronics retailer Best Buy leapt on the back of rumours that it might go private.

S&P 500 - Risers
MEMC Electronic Materials (WFR) $2.64 +21.66%
Constellation Brands Inc. Class A (STZ) $28.81 +6.47%
Best Buy Co. Inc. (BBY) $22.20 +5.92%
Metropcs Communications Inc. (PCS) $6.36 +5.12%
Sprint Nxtel Corp. (S) $3.40 +4.29%
AutoNation Inc. (AN) $36.76 +4.20%
CH Robinson Worldwide Inc (CHRW) $60.85 +3.96%
Micron Technology Inc. (MU) $6.55 +3.80%
Limited Brands Inc. (LTD) $43.95 +3.34%
Lorillard Inc. (LO) $135.45 +2.65%

S&P 500 - Fallers
Duke Energy Corp. (DUK) $23.28 -66.35%
Unitedhealth Group Inc. (UNH) $56.26 -3.83%
Goodyear Tire & Rubber Co. (GT) $11.42 -3.30%
Fastenal Co. (FAST) $39.03 -3.18%
Avon Products Inc. (AVP) $15.75 -2.84%
Juniper Networks Inc. (JNPR) $15.85 -2.82%
NetApp Inc. (NTAP) $30.95 -2.73%
Nvidia Corp. (NVDA) $13.44 -2.71%
Life Technologies Corp. (LIFE) $43.85 -2.53%
Emerson Electric Co. (EMR) $45.40 -2.53%

Dow Jones I.A - Risers
JP Morgan Chase & Co. (JPM) $36.28 +1.54%
AT&T Inc. (T) $36.20 +1.51%
American Express Co. (AXP) $59.05 +1.44%
Verizon Communications Inc. (VZ) $44.93 +1.10%
Coca-Cola Co. (KO) $78.92 +0.93%
Johnson & Johnson (JNJ) $68.00 +0.65%
Walt Disney Co. (DIS) $48.72 +0.45%
Chevron Corp. (CVX) $105.86 +0.34%
Hewlett-Packard Co. (HPQ) $20.16 +0.25%
Merck & Co. Inc. (MRK) $41.85 +0.24%

Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $49.43 -2.25%
General Electric Co. (GE) $20.49 -1.68%
Bank of America Corp. (BAC) $8.05 -1.59%
Boeing Co. (BA) $73.18 -1.51%
Caterpillar Inc. (CAT) $83.68 -1.45%
Alcoa Inc. (AA) $8.63 -1.43%
United Technologies Corp. (UTX) $75.04 -0.65%
Wal-Mart Stores Inc. (WMT) $69.35 -0.53%
Cisco Systems Inc. (CSCO) $17.08 -0.52%
McDonald's Corp. (MCD) $88.08 -0.51%

Nasdaq 100 - Risers
CH Robinson Worldwide Inc (CHRW) $60.85 +3.96%
Nll Holdings Inc. (NIHD) $10.50 +2.64%
News Corp. Class A (NWSA) $22.85 +2.51%
Priceline.Com Inc. (PCLN) $680.86 +2.46%
Qiagen N.V. (QGEN) $17.10 +2.40%
Expedia Inc. (EXPE) $49.17 +2.28%
Hologic Inc. (HOLX) $18.44 +2.22%
Intuitive Surgical Inc. (ISRG) $565.97 +2.20%
Amgen Inc. (AMGN) $74.36 +1.99%
Illumina Inc. (ILMN) $41.17 +1.92%

Nasdaq 100 - Fallers
Foster Wheeler AG (FWLT) $16.67 -3.42%
Fastenal Co. (FAST) $39.03 -3.18%
NetApp Inc. (NTAP) $30.95 -2.73%
Nvidia Corp. (NVDA) $13.44 -2.71%
Life Technologies Corp. (LIFE) $43.85 -2.53%
Check Point Software Technologies Ltd. (CHKP) $48.46 -2.28%
PACCAR Inc. (PCAR) $38.31 -2.25%
Baidu Inc. (BIDU) $112.69 -1.99%
eBay Inc. (EBAY) $41.22 -1.87%
Wynn Resorts Ltd. (WYNN) $102.15 -1.51%

BC

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