Home Business Dow Jones and S&P 500 close at record levels

Dow Jones and S&P 500 close at record levels


US shares closed at record levels, helped by strong data on the manufacturing sector.

The Dow Jones rose 26 points to close at 16,743, its second consecutive record close.

The broader S&P 500 added just a point, but that was enough to secure its third consecutive record session.

US factories remained busy in May, according to the manufacturing activity index compiled by the Institute for Supply Management (ISM).


US shares closed at record levels, helped by strong data on the manufacturing sector

US shares closed at record levels, helped by strong data on the manufacturing sector (photo AP)

The ISM had to correct its original release which showed slowing activity, but had been calculated incorrectly.

“The market has lately been focused more on the weak economic news and the bond market, but we saw a reversal of that today with the revised [ISM] numbers,” said Rick Meckler, president of hedge fund LibertyView Capital Management in Jersey City, New Jersey.

“But it’s hard to move the market higher, considering we are fairly fully valued at this point,” he said.

The technology focused NASDAQ fell 10 points to close at 4,237.

Shares in Botox-maker Allergan soared 9% after Valeant Pharmaceuticals said it would go hostile with its bid for the company.

Activist investor, Bill Ackman, who is partnering with Valeant in the bid, said he would move to replace almost the entire board of Allergan.

Equipment maker Caterpillar was the biggest winner among the Dow Industrials, rising 1.5%.

Technology giant Intel also had a strong session, adding 1.1%.

On the NASDAQ, Broadcom shares rose over 10% after the company said it would look for a buyer for its division that makes chips used in mobile devices.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.