Stocks Advance on First Trading Day of the Month
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Hemera/Thinkstock(NEW YORK) — Stocks closed near session highs on Monday as all three of the major averages posted solid gains on the first trading day of June.
The Dow Jones Industrial Average had its best day in a month, led higher by Merck, Intel, Hewlett-Packard and Coca Cola. The blue chips index closed up 138.46 points at 15,254.03.
The Nasdaq Composite and S&P 500 spent most of the day in the red before rallying late in the day to finish higher. The Nasdaq finished at 3,465.37, up 9.45 points, while the S&P ended up 9.68 points at 1,640.42.
The markets’ early struggles were due in part to less than stellar reports on manufacturing activity and construction spending. But investors were cheered by strong auto sales. GM gained after the automaker said its May sales were the strongest since September 2008 – Cadillac was a key driver. Ford also advanced after reporting its sales jumped 14 percent last month.
One big loser on Wall Street Monday was Zynga. The company behind Farmville and other online games said it will lay off 18 percent of its workforce, around 250 people, as it fights to restructure and reduce costs. The stock finished down 12 percent at just under $3 a share.
On Tuesday, investors will see if the Dow can keep the Tuesday winning streak alive, trying to go 21 for 21 days with gains. The Dow hasn’t posted a loss on Tuesday since early January.
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