US stocks gain on positive service data

June 6th, 2012 - 6:57 am ICT by IANS  

New York, June 6 (IANS) US stocks gained Tuesday, with the Dow Jones industrial average snapping a four-day losing streak, as investors felt heartened after a better-than-expected service report.

When the market closed, the Dow Jones industrial average added 26.49 points, or 0.22 percent, to 12,127.95. The Standard & Poor’s 500 added 7.32 points, or 0.57 percent, to 1,285.50. The Nasdaq Composite Index rose 18.10 points, or 0.66 percent, to 2,778.11.

According to the Institute for Supply Management, the US service sector grew at a slightly faster pace in May, marking the 29th straight month of expansion, Xinhua reported.

Meanwhile, finance ministers and central bank governors of the Group of Seven (G7) leading industrialized nations held an emergency conference call Tuesday to discuss the European debt crisis, trying to figure out some way to prevent the problems from further worsening. However, there was no joint statement issued after the meeting.

Investors were still cautious before the US Federal Reserve gives its latest assessment on the economy, hoping the central bank would give some hint about the third round of quantitative easing policy (QE3).

“Don’t forget, the beige book will be released Wednesday, and will surely be looked at even more closely than usual by traders as we inch toward that 20 June FOMC policy announcement,” said Stephen Guilfoyle, an economist at Meridian Equity Partners.

“Will we see coordinated action by the planet’s central banks? Chances are that the time is not yet upon us, but I won’t rule it out until Thursday.”

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