US stocks advance on positive manufacturing data

U.S. stocks advanced, as Standard & Poor’s 500 Index recovered from its first monthly loss since October, as reports showing improved manufacturing in the U.S. That boosted confidence in the global economy. The reports were in a line with a gradually improving economy, but not strong enough to raise concerns about the Federal Reserve reducing its stimulus policies.

The S&P benchmark index surged by 0.54% to to 1,614.96 at close, The Dow Jones Industrial Average increased 65.36 points, or 0.44 percent, to 14,975.

Volatility could be higher than usual this week, with low trading volumes during the trading week exaggerating any moves. U.S. markets are closed Thursday for the Independence Day holiday. The week is most likely going to be marked by Friday’s report on non-farm payrolls for month of June. Some of the stocks to watch this week include Apple as company is taking steps to registering iWatch trademark in Japan, BlackBerry which is struggling with its flagship smartphone sale, and HTC Corp which is due to post earnings this week.

In corporate news, Shares of Zynga the social game provider added almost 11% for the day and were up about 3% after the market closed following an announcement that CEO Mark Pincus will step down.

Best Buy the electronics retailers shares jumped on a bullish analyst report. Pandora was upgraded by Morgan Stanley, sending shares of the music streaming company to a new 52-week high.

Tesla shares hit a record high above $116 after analysts at Jefferies raised price target for the stock to $130.

In Europe markets recorded gains. The FTSE 100 surged by 1.5% as it is expected the new governor, Mark Carney, who joined the Bank of England to follow looser monetary policy.