Created on Tuesday, 01 July 2014 Written by STEVE ROTHWELL, AP Markets Writer
NEW YORK (AP) — The stock market climbed to all-time highs after reports showed that manufacturing in the US and China expanded in June, boosting the outlook for global growth. Netflix jumped after analysts at Goldman Sachs raised their outlook on the stock.
KEEPING SCORE: Standard & Poor's 500 index rose 18 points, or 0.9 percent, to 1,978 as of 1:26 p.m. Eastern time. The index is on track to close above its all-time closing high of 1,962.87 set June 20.
The Dow Jones industrial average gained 171 points, or 1 percent, to 16,996. The Nasdaq composite climbed 62 points, or 1.4 percent, to 4,471.
DRUG STAKE: Regeneron climbed $19.53, or 7 percent, to $301.94, the biggest gain in the S&P 500. The French drugmaker Sanofi said in a regulatory filing that it had raised its stake in the company to 22.5 percent from about 20 percent in April. Sanofi and Regeneron are collaborating on drug research and have an agreement that Sanofi won't acquire more than a 30 percent stake in the company.
CUTTING CABLE: Netflix jumped $26.35, or 6 percent, to $467 after analysts at Goldman Sachs raised their outlook for the internet streaming video company. Goldman estimates that Netflix's potential audience of subscribers will double over the next three years to 207 million people as the company expands internationally. The analysts have a 12-month price target of $590 on the stock.
WORLD CUP BOOST: Twitter rose $1.46, or 3.6 percent, to $42.22 after analysts at Stern Agee raised their estimates for the company's earnings for next year and said that the social media company should benefit from increased use during the soccer World Cup. The company also said today that it was hiring Anthony Noto, a Goldman Sachs executive, as its new chief financial officer.
FACTORIES: U.S. manufacturing grew in June for the 13th straight month. But the pace of the expansion slowed from May. The Institute for Supply Management says its manufacturing index dipped to 55.3 in June from 55.4 in May. Any reading higher than 50 signals that manufacturing is expanding.
MADE IN CHINA: Chinese manufacturing grew in June for the first time in six months, according to a private survey. HSBC said Tuesday its purchasing managers index rose to 50.7 from 49.4 in May. HSBC said its survey found the strongest growth in new orders in 15 months and that export orders rose for a second month.
THE QUOTE: "We are seeing evidence of broad-based economic growth," said Joe Tanious, a global market strategist at JPMorgan Funds. "It's setting up a backdrop for this run that we are seeing in the equity markets."
BONDS AND COMMODITIES: In the market for government bonds prices fell. The yield on the 10-year note climbed to 2.56 percent from 2.53 percent late Monday. Bond yields fall when prices rise. The price of crude oil fell 48 cents to $104.85 a barrel.