Stocks Gains On Factory Order

U.S. stocks closed higher on Tuesday after a surprise jump in May factory orders and higher commodities prices that boosted energy and materials stocks. The Dow Jones industrial average gained 72.43 points, or 0.56 percent, to 12,943.82. The Standard & Poor’s 500 Index rose 8.51 points, or 0.62 percent, to 1,374.02. The Nasdaq Composite Index added 24.85 points, or 0.84 percent, to 2,976.08.

Orders for goods produced in U.S. factories rose 0.7% in May, the Commerce Department reported Tuesday.  Orders for durable goods — products meant to last at least three years – rose 1.3% in May. Orders for nondurable goods rose 0.2%.

The European Central Bank is expected to cut interest rates to a record low on Thursday but may need to do more to satisfy financial markets already starting to wonder about the solidity of last week’s summit measures to tackle the euro zone crisis.

Barclays chief executive Bob Diamond quit on Tuesday under fire from politicians and regulators as the bank defended its actions in an interest rate-rigging scandal involving a dozen banks and which threatens to drag in government and the Bank of England.

Energy regulators have subpoenaed JPMorgan Chase & Co twice in the past three months as part of an investigation into whether the bank manipulated power markets in California and the Midwest.

Crude-oil futures on Tuesday hovered at their highest since late May, shaking off the previous session’s losses to gain on a flare-up of geopolitical concerns about Iran. Crude for August delivery gained $3.42, or 3.4%, to $87.15 a barrel on the New York Mercantile Exchange.

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