Published May 05, 2014
FOX Business: Capitalism Lives Here
After kicking off the day with heavy losses, Wall Street shot to the upside after strong U.S. service-sector data overshadowed weak factory data from China.
The Dow Jones Industrial Average rose 17.7 points, or 0.11%, to 16531, the S&P 500 advanced 3.5 points, or 0.19%, to 1885 and the Nasdaq Composite climbed 14.2 points, or 0.34%, to 4138.
China's manufacturing sector is sputtering. HSBC's purchasing-managers index was revised down to 48.1 in late April from a flash estimate of 48.3, confounding economists who expected an increase to 48.4. The measure indicates the factory sector in the world's No. 2 economy contracted for the fourth month in a row.
"Over the past few days, Beijing has introduced more reform measures which could support growth by inducing more private sector investment," Hongbin Qu, HSBC's chief economist for China wrote in the report. "We think bolder actions will be required to ensure the economy regains its momentum."
On the U.S. front, the Institute for Supply Management’s gauge of non-manufacturing activity grew to 55.2 in April, topping the Street’s expectation for a reading of 54.1, from 53.1 in March. Readings above 50 point to expansion, while those below indicate contraction.
"It’s the best read since July and has gotten back what it lost during the winter and then some but the components were somewhat mixed," said Peter Boockvar, chief market analyst at The Lindsey Group, in an email to clients.
Pfizer (PFE) posted bottom-line results that topped estimates, but disappointing sales. The American biotech behemoth is currently looking to buy AstraZeneca (AZN) for at least $106 billion. Target's (CEO) CEO abruptly resigned, and the firm said it would make its CFO interim chief executive.
Elsewhere, U.S. crude oil futures rose 8 cents, or 0.09%, to $99.85 a barrel. Wholesale New York Harbor gasoline dipped 0.56% $2.928 a gallon. Gold advanced $8.90, or 0.68%, to $1,312 a troy ounce.