U.S. stocks end up, bucking weak data; German yields tumble
By Barani Krishnan
NEW YORK (Reuters) - U.S. stock investors ignored weak economic data and pushed equities higher on Wednesday, as drugmakers' shares rose and a Supreme Court ruling lifted major broadcaster stocks, while German bond yields hit the year's low on safe-haven bids.
The dollar and Treasuries yields also fell after data showed the U.S. economy contracted more than thought in the first quarter and durable goods orders unexpectedly fell in May. The data contrasted with Tuesday's stronger-than-expected measures of consumer confidence and new home sales.
The S&P 500 and Dow closed within striking range of new record levels.
"You do hear people talking about us being in some kind of a bubble but I do not see that at all," said Bryant Evans, investment adviser and portfolio manager at Cozad Asset Management, in Champaign, Illinois. "The stock prices are reflecting reasonable valuations."
Shares of Bristol-Myers Squibb Co BMY.N rose 2.9 percent to $49.73 a day after the drugmaker announced positive news about testing of its cancer immunotherapy nivolumab.
Shares of CBS (CBS.N: Quote) shot up 6.2 percent to $62.48 as the U.S. Supreme Court ruled TV startup Aereo violates copyright law by using tiny antennas to provide subscribers with broadcast network content via the Internet.
The Dow Jones industrial average .DJI rose 49.38 points or 0.29 percent, to 16,867.51, the S&P 500 .SPX gained 9.55 points or 0.49 percent, to 1,959.53 and the Nasdaq Composite .IXIC added 29.401 points, or 0.68 percent, to 4,379.757.
The dollar slid 0.14 percent to a month low against a basket of major currencies .DXY after the weak U.S. gross domestic product and durable goods data signaled the likelihood of a continued dovish stance from the Federal Reserve.[FRX/] Continued...