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U.S. stocks open higher after data, Fed in focus; Dow Jones up 1.04%

Published 06/17/2013, 09:45 AM
Updated 06/17/2013, 09:47 AM
Investing.com - U.S. stocks opened higher on Monday, after the release of positive U.S. manufacturing data, although investors remained cautious ahead of the Federal Reserve's upcoming policy meeting.

During early U.S. trade, the Dow Jones Industrial Average jumped 1.04%, the S&P 500 index climbed 0.92%, while the Nasdaq Composite index rallied 1.02%.

Data showed that the New York Federal Reserve’s index of manufacturing conditions improved more-than-expected in June, rising to a three month high of 7.8 from minus 1.4 in May. 

Markets were jittery amid growing expectations that the Fed will to start taper off its bond purchasing program later this year.

Investors were looking ahead to the central bank’s rate statement on Wednesday amid uncertainty over the bank's next move.

Netflix shares surged 5.31% after the online move-streaming company struck its largest-ever original content deal with DreamWorks Animation.

In the same sector, Facebook advanced 0.93% after the social-networking giant sent out invitations to members of the press for a "new product" event this Thursday.

Adding to gains, Boeing rallied 1.83% as the aircraft manufacturer said demand for the 747-8 jumbo jet, its largest and most-expensive model, will recover even as the company stashes some planes in desert storage and slows the production rate.

Elsewhere, chemical producer Rockwood Holdings gained 0.81%, after it agreed to sell German ceramics unit CeramTec to Cinven USD2 billion to focus on its metal business and return cash to shareholders.

Also in company news, Smithfield Foods advanced 0.88% after shareholder Starboard Value said the pork processor should be broken up rather than be sold to Chinese meat company Shuanghui International.

U.S. real-estate investment trust Weyerhaeuser was also on the upside, jumping 2.44% after agreeing to buy Longview Timber LLC for USD2.65 billion including debt from affiliates of Brookfield Asset Management, marking the third-largest forestry acquisition in North America.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 surged 1.56%, France’s CAC 40 rallied 1.66%, Germany's DAX advanced 1.48%, while Britain's FTSE 100 gained 0.57%.

During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.22%, while Japan’s Nikkei 225 Index surged 2.73%.


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