US stocks edge higher

United States stocks edged higher on Wednesday as investors perpetuated to find value in equities over other asset classes despite the latest economic data coming in below prospects.

Reuters reported that the US economy contracted in the first quarter at a 2.9 per cent annual rate, a much steeper pace than antecedently estimated, though activity was affected by an astringent winter, and there are designations that magnification has since rebounded. In another negative data point, US orders for durable goods unexpectedly fell one per cent in May.

Futures initially fell on the news, but Wall Street showed designations of vigor in early trading. The Dow and the S&P 500 remain within striking distance of record levels.

“As long as investors believe the economy will keep growing, and everyone expects magnification in the second quarter, the lesser evil will be to buy equities at a modestly higher valuation, since bonds and cash don’t represent more preponderant values,” verbally expressed Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.

The Dow Jones industrial average rose 32.24 points or 0.19 per cent, to 16,850.37. The S&P 500 gained 5.74 points or 0.29 per cent, to 1,955.72. The Nasdaq Composite integrated 16.61 points or 0.38 per cent, to 4,366.97.

The S&P 500 hit an intraday record high on Tuesday afore concerns over Iraq turned indexes sharply lower in afternoon trading. Those tensions remained in focus after militants in Iraq assailed one of the country’s most immensely colossal air bases. The first US teams arrived to avail Iraqi security forces contravene the violence.