The US markets edged higher in a short trading session on Tuesday, after a surprise jump in May factory orders and speculation grew that central banks will act to spur growth. The May reading for factory goods orders provided a pleasant contrast to a dire picture for the health of manufacturing in the ISM report. The Commerce Department stated that orders for US factory goods rose 0.7% in May. Orders for durable goods -- products meant to last at least three years rose 1.3% in May. Orders for nondurable goods rose 0.2%. In Europe, investors are speculating that central bank may step up actions as the euro area producer price inflation declined to a 27-month low and UK mortgage approvals fell in May. The Euro-zone producer prices fell 0.5% from a month ago in May following a 0.1% rise in April, the latest data released by Eurostat showed. On an annual basis, the price index gained 2.3% in May.
The Dow Jones Industrial Average closed higher by 72.43 points or 0.56%, at 12,943.80. The S&P 500 finished up by 8.51 points, or 0.62%, to 1,374.02, while the Nasdaq closed up by 24.85 points or 0.84%, to 2,976.08.
The Indian ADRs closed in green; Dr. Reddy’s Lab was up 1.24%, HDFC Bank was up 0.93%, ICICI Bank was up 0.84%, Infosys was up by 0.63% and Tata Motors was up 0.45%.