By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- The S&P 500 and the Dow Jones
Industrial Average closed at record levels, led by gains in the
health-care, tech and consumer discretionary sectors.
Economic data continued to point to an improving economy; a
manufacturing index showed the strongest level of new orders since
the end of last year.
The S&P 500 (SPX) gained 13.09 points, or 0.7%, to end at
1,973.32, its 23rd record close this year. The benchmark index hit
an all-time intraday high at 1,978.62.
The Dow Jones Industrial Average (DJI) came within two points of
17,000 during the session. It gained 129.47 points, or 0.8%, to
close at 16,956.04, its 12th record close of 2014.
The Nasdaq Composite (RIXF) rose 50.47 points, or 1.1%, to
4,458.65, its highest level since March 2000.
The Russell 2000 (RUT) closed within a hair's breadth of its
previous record level reached on March 4, gaining 12.64 points, or
1%, to end at a preliminary 1,205.82.
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Marc Doss, regional chief investment officer for Wells Fargo
Private Bank, said economic data point to a rebound in the U.S.
economy.
"After a terrible first quarter, we are seeing a rebound in
housing, manufacturing. The economy is growing but slowly enough
for the Fed to keep rates low for a while. This environment is very
favorable for equities," Doss said.
On Wednesday, investors will get a report on private-sector job
creation. The ADP employment report, due at 8:15 a.m. Eastern time,
is expected to show an increase of 179,000. It comes a day before
the monthly U.S. jobs report, moved up by 24 hours because of the
July 4 holiday.
In a further sign that consumers are spending more, U.S. car
sales in June reached the highest annual rate in more than eight
years and exceeded the pace than economists had expected. General
Motors Co. (GM.XX) shares rose 3% as the car maker reported its
U.S. car and light truck sales rose 1% in June to 267,461
vehicles.
Shares of Netflix Inc.(NFLX) leapt 7% after Goldman Sachs
analysts upgraded the stock to a buy, from neutral.
Exelon Corp.(EXC) was one of the biggest decliners in the
S&P, as utilities dragged on the index. The stock dropped 2%
Tuesday but has climbed 30% so far this year. Read: Movers and
Shakers.
In other markets, Japan's Nikkei Average rose 1.1% and Europe's
Stoxx 600 closed higher.
Upbeat Chinese and European economic data briefly lifted oil
futures (CLQ4) above $106 a barrel, but prices settled slightly
lower for a fourth session in a row ahead of weekly updates on U.S.
supplies. Gold futures (GCQ4) logged their highest settlement in
about 11 weeks, as clashes in eastern Ukraine and the Middle East
boosted safe-haven demand for the precious metal.
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