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U.S. stocks up on U.S. data, Iraq fears weigh; Dow rises 0.03%

Published 06/16/2014, 04:30 PM
Updated 06/16/2014, 04:35 PM
Stocks eke out gains on U.S. data, though Iraqi fears dampen spirits
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Investing.com - Better-than-expected U.S. manufacturing gauges sent U.S. stocks rising on Monday on hopes that more bustling factory floors will boost corporate top lines, though fears chaos in Iraq may slow global growth dampened spirits on Wall Street somewhat.

At the close of U.S. trading, the Dow 30 rose 0.03%, the S&P 500 index rose 0.08%, while the NASDAQ Composite index rose 0.24%.

The Volatility S&P 500 index, which measures market volatility, was up 3.86% at 12.65.

The Federal Reserve Bank of New York reported earlier that its general business conditions index increased to 19.28 this month from 19.01 in May. Analysts had expected the index to decline to 15.0.

A separate report showed that U.S. industrial production rose by 0.6% last month, beating forecasts for a 0.5% gain, which drew applause on Wall Street, though events in Iraq capped gains.

Concerns over the ongoing Sunni insurgency in Iraq weighed on markets by stoking fears that the escalating conflict could dampen global recovery, especially if the violence disrupts Iraqi oil exports, hikes prices at U.S. gasoline pumps and waters down the economy.

Iraqi fears came at a time when U.S. growth expectations came under scrutiny.

The International Monetary Fund earlier trimmed its 2014 U.S. economic growth forecast due to a harsh winter and a “still-struggling housing market."

The IMF said it now expects the U.S. economy to expand 2% in 2014, down from its forecast of 2.8% in April.

The Federal Reserve will conclude a two-day policy meeting on Wednesday, and concerns rose the U.S. central bank may adjust its 2014 growth forecast un wake of the -1% first-quarter GDP figure.

Leading Dow Jones Industrial Average performers included Chevron Corporation (NYSE:CVX), up 1.05%, Home Depot Inc (NYSE:HD), up 1.02%, and Coca-Cola Company (NYSE:KO), up 0.72%.

The Dow Jones Industrial Average's worst performers included UnitedHealth Group Incorporated (NYSE:UNH), down 1.48%, General Electric Company (NYSE:GE), down 0.80%, and Cisco Systems Inc (NASDAQ:CSCO), down 0.71%.

European indices, meanwhile, ended the day lower.

After the close of European trade, the DJ Euro Stoxx 50 fell 0.01%, France's CAC 40 fell 0.73%, while Germany's DAX fell 0.29%. Meanwhile, in the U.K. the FTSE 100 fell 0.34%.

On Tuesday, the U.S. is to produce data on housing starts, building permits and consumer prices.

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