Stocks Start Up on Central Bank Hopes

U.S. stocks started higher on Friday, as optimism over a possible coordinated action by major world central banks if Sunday’s Greek election causes financial turmoil was tempered by a weak reading on domestic manufacturing. The Dow Jones Industrial Average lately rose 52.33 points to 12,704.24. The S&P 500 Index advanced 5.54 points to 1,334.64. The Nasdaq Composite climbed 10.16 points to 2,846.49.

U.S. factories produced less in May than April, as automakers cut back on output for the first time in six months. The report indicates that manufacturing, a key driver of the economic growth, is slowing. The Federal Reserve said Friday that factory output declined 0.4 percent last month, after increasing 0.7 percent in April. Auto production fell 1.5 percent, the first drop since November. Auto sales rose sharply earlier this year but slowed in May.

Foreign demand for U.S. Treasury securities rose to a record high in April. China, the largest buyer of Treasury debt, increased its holdings slightly after trimming them for two straight months. The Treasury Department said Friday that total foreign holdings rose 0.4 percent to $5.16 trillion. It was the fourth consecutive monthly increase.

Nokia Corp. NOK1V.HE +1.91%on Friday saw its credit downgraded to junk by Moody’s Investors Service, which said the company is facing more pressure on its earnings and higher cash burn than it had previously thought.






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