The Dow Jones closed at an all-time high Tuesday.
ASSOCIATED PRESS Enlarge
NEW YORK — A better outlook for global manufacturing pushed the stock market to an all-time high on Tuesday.
The Dow Jones industrial average climbed within two points of 17,000 for the first time after separate surveys showed that manufacturing expanded in China and the United States, the world’s two biggest economies. In China, manufacturing grew in June for the first time in six months and in the United States the sector notched its 13th straight month of growth.
The Dow climbed as high as 16,998.70 in early afternoon trading. For the day, it gained 129.47 points, or 0.8 percent, to 16,956.07. The previous record of 16,947.08 was set June 20.
The Standard & Poor’s 500 index rose 13.09 points, or 0.7 percent, to 1,973.32. Its previous high was 1962.61 on June 23.
The Nasdaq composite rose 50.47, or 1.1 percent, to 4,458.65. That tech-heavy index’s record high was 5,048.62, set in 2000.
On Tuesday, General Motors rose the most in almost a month. The automaker reported that its U.S. sales increased 1 percent in June despite a record-setting string of safety recalls. Netflix jumped after analysts at Goldman Sachs raised their outlook on the stock.
“The economic news, by and large, isn’t bad here,” said Phil Orlando, chief equity strategist at Federated Investors. “Maybe investors are starting to think that this thing is going to grind higher.”
Stocks climbed from the open after HSBC said its Chinese purchasing managers index rose to 50.7 in June from 49.4 a month earlier. Numbers above 50 signal growth.
The market added to its gains after another survey showed that U.S. manufacturing kept growing.
The gains were broad. Nine of the 10 industry sectors that make up the S&P 500 rose. Utilities were the only sector to fall.
The S&P 500 index has now gained 6.8 percent this year, after jumping almost 30 percent in 2013. While stocks are no longer cheap, they are still a compelling investment compared with bonds or cash because interest rates are close to zero, said Joe Tanious, a global market strategist at JPMorgan Funds.
“In the long run market prices are dictated by the fundamentals,” said Mr. Tanious. “And the underlying fundamentals suggest that markets can move higher from here.”