U.S. stocks advanced, with each of the major U.S. indexes notching record highs, after a batch of economic data suggested the economy was picking up speed. Fred Katayama reports.
Stocks closed in the green on a better-than-expected private sector hiring report and positive manufacturing data. The ADP numbers showed that the labor market continues to strengthen, further boosting chances of a rate hike by the Federal Reserve later this month. The report sets the stage for the Labor Department's jobs data due on Friday. Stocks extended gains after the Institute for Supply Management said U.S. factory activity edged up in May after two slow months. Ben Lau of Apriem Advisors: (SOUNDBITE) BEN LAU, CHIEF INVESTMENT OFFICER, APRIEM ADVISORS (ENGLISH) SAYING: "After a few months of economic weakness, Wall Street was pretty concerned by the economy. Is the economy going down or or maybe just, what Janet Yellen called, it's a transitory weakness in the market. And it seems like today's good numbers ADP, ISM, and also from today's auto sales numbers, yeah, I think it looks like the economy is improving steadily from the weakness from the past few months." Deere's stock rose after the tractor maker said it's buying the German road construction company Wirtgen Group for $5.2 billion. Cloud storage firm Box was up after it posted a smaller loss than Wall Street expected. And Goodyear Tire shot up after an upgrade from Morgan Stanley. In Europe, stocks closed higher.