Stock markets in the United States rallied following a positive report from the Federal Reserve’s Beige Book, which indicated widespread growth across the country.
The Beige Book showed that the economy expanded in the 12 districts of the Federal Reserve and described the pace of economic growth as “moderate” to “modest.”
The Institute for Supply Management (ISM) reported that the 17 non-manufacturing industries showed growth in May. According to the institute, its non-manufacturing index (NMI) recorded a 1.1% increase. raising it to 56.3% last month, which represents a faster growth rate than in April and the highest reading since August 2013.
The ISM’s non-manufacturing new orders index rose 2.3% to 60.5%. The ISM said employment activity in the sector also increased. The non-manufacturing employment index recorded a 1.1% increase, bringing it to $52.4%. Supplier deliveries remained at 50% in May. Investors are now waiting for the European Central Bank’s decision on stimulus measures and the latest employment data from the U.S. Department of Labor.
Wedbush Securities Managing Director of Equity Trading Michael James commented, “The market is positioning ahead of the events later this week. We’re just marking time until we get to the real market-moving decisions, which are going to be from the ECB tomorrow and the jobs data on Friday.”
- Dow Jones Industrial Average (DJIA)- 16,737.47 (+0.09%)
- S&P 500- 1,927.81 (+0.019 %)
- NASDAQ- 4,251.64 (+0.41%)
- Russell 2000- 1,130.83 (+0.42%)
- EURO STOXX 50 Price EUR- 3,237.93 (-0.10%)
- FTSE 100 Index- 6,818.63 (-0.26%)
- Deutsche Borse AG German Stock Index DAX- 9,926.67 (+0.07%)
- Nikkei 225- 15,067.96 (+0.22%)
- Hong Kong Hang Seng Index- 23,151.71 (+0.91%)
- Shanghai Shenzhen CSI 300 Index- 2,128.27 (-1.01%)
Stocks in Focus
The stock price of Protective Life Corp. (NYSE:PL) continued to increase after the company agreed to be acquired by Dai-ichi Life Insurance Co Ltd (TYO:8750) for $5.7 billion or ¥582.2 billion—the largest overseas acquisition by a Japanese life insurer. Under the terms of the deal, Dai-chi will pay $70 per share in cash and a 34% premium on the $52.30 closing stock price of Protective Life on May 30. Shares of Dai-ichi Life Insurance Co Ltd (TYO:8750) rose 3.59% to ¥1,499 in Tokyo.
FuelCell Energy Inc (NASDAQ:FCEL) declined by 8% to $2.18 per share after the company reported higher-than-expected losses for the second quarter. The fuel cell power plant manufacturer reported adjusted losses of 4 cents per share on $38.3 million in revenue.
The stock price of Pandora Media Inc (NYSE:P) declined more than 2% earlier today but managed to recover some of those losses by the end of trading today. The stock closed at around $24.53 per share, down by 0.33% or 5 cents. The Internet radio service provider’s stock was impacted by a statement from the Department of Justice (DOJ). The agency said that it will review decades-old agreements governing songwriter royalties after its legal battle with rights holders.