The stock markets in the United States rallied today due to investors’ optimism regarding the growth of the economy as manufacturing orders increased in March.
The Institute for Supply Management (ISM) index showed that U.S. manufacturing climbed for the 10th consecutive month. According to ISM, March PMI increased by 0.5% to 53.7% from 53.2% in February. The production index recorded an increase of 7.7% to 55.9% from 48.2% in the previous month. New orders increased from 48.2% to 55.9%.
In a statement, Bradley J. Holcomb, CPSM, CPSD, chairperson at ISM said, “Several comments from the panel reflect favorable demand and good business conditions, with some lingering concerns about the particularly adverse weather conditions across the country.” The ISM reported that 14 out of the 18 manufacturing industries reported growth last month.
“The plants were open, the employees were available, raw materials were available. That’s a good sign of thawing in terms of the weather conditions,” added Holcomb during a conference call with reporters.
“The weakness we saw in the very early part of this year is going to abate and we’ll see better growth. We’re making our way back to something that’s more sustainable,” commented Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York.
Yesterday, Federal Reserve Chairperson Janet Yellen stated a strong commitment to help sustain the improvement in the jobs market.
- Dow Jones Industrial Average (DJIA)- 16,532.61 (+0.46%)
- S&P 500- 1,885.52 (+0.70 %)
- NASDAQ- 4,268.04 (+1.64%)
- Russell 2000- 1,188.87 (+0.35%)
- EURO STOXX 50 Price EUR- 3,186.34 (+0.78%)
- FTSE 100 Index- 6,652.61 (+0.82%)
- Deutsche Borse AG German Stock Index DAX- 9,603.71 (+0.50%)
Asia Pacific Markets
- Nikkei 225- 14,791.99 (-0.24%)
- Hong Kong Hang Seng Index- 22,448.54 (+1.34%)
- Shanghai Shenzhen CSI 300 Index- 2,163.12 (+0.78%)
Stocks in Focus
The stock price of Celgene Corporation (NASDAQ:CELG) gained 5% to $146.60 per share after entering a collaboration agreement with Forma Therapeutics to identify potential new drugs to license.
The shares of Intuitive Surgical, Inc. (NASDAQ:ISRG) rose nearly 13% to $493.60 per share after the United States Food and Drug Administration (FDA) approved da Vinci Xi, a new version of its surgical system with longer instrument shafts that provider greater reach. The da Vinci Xi also features thinner surgical arms with a new joint design that improves the range of motion; and a new overhead instrument arm design intended to give surgeons anatomical access from almost any position.
Ford Motor Company (NYSE:F) climbed almost 5% to $16.32 per share after the second largest automaker in the United States reported that its sales increased by 3.3% to 243,417.