The US markets rose for the third straight day on Tuesday, with the S&P 500 index finishing above 1,400 and the Nasdaq Composite above 3,000 for the first time since early May, on the hopes that central banks on both sides of the Atlantic are readying a plan to boost economic growth and as the US employers posted the most job openings in four years in June, a positive sign that hiring may pick up. The Labor Department stated that job openings rose to a seasonally adjusted 3.8 million in June, up from 3.7 million in May. That's the most since July 2008, while layoffs fell. The data follow Friday's report that stated employers in July added the most jobs in five months. A rise in openings could signal better hiring in the coming months. Besides, consumer credit increased by $6.5 billion in June, according to data from the Federal Reserve. Meanwhile, Federal Reserve Chairman Ben S. Bernanke stated that new regulatory structures such as the Dodd-Frank Act and the Basel accords are important in helping to prevent another crisis because they give regulators a more holistic view of the financial system. Regulators want to take steps to provide a warning of an approaching crisis, Bernanke stated in Washington. Investors also continue to focus on corporate sales and earnings data.
In Europe, Italian economy extended the decline for the fourth quarter in a row and German factory orders fell 1.7%, more than estimated in June. Italy's economy contracted by 0.7 percent in the second quarter, compounding the difficulties for Mario Monti's technocrat government as it grapples with a debt crisis that threatens the whole euro zone. On the other hand, the UK retail sales rose unexpectedly in July.
The Dow Jones industrial average gained 51.09 points, or 0.39 percent, to 13,168.60. The S&P 500 Index gained 7.12 points, or 0.51 percent, to 1,401.35, while the Nasdaq Composite was up by 25.95 points, or 0.87 percent, to 3,015.86.
The Indian ADRs closed in green on Tuesday, Tata Motors was up 0.76%, Infosys was up 0.72%, ICICI Bank was up 0.52% and Dr. Reddy's Lab was up 0.12%. On the other hand, HDFC Bank was down 0.69%.