* Tesla higher after Model 3 gets approval for production
* Bankrate jumps after $1.24 bln Red Ventures takeover offer
* Goldman Sachs boosts Dow
* Indexes up: Dow 0.45 pct, S&P 0.46 pct, Nasdaq 0.43 pct
(Updates to open)
By Tanya Agrawal
July 3 (Reuters) – U.S. stocks began the third quarter on a
positive note in a truncated session on Monday, with bank shares
leading a broad rally.
Goldman Sachs gave the biggest boost to the Dow Jones
Industrial Average, while Bank of America and JPMorgan
helped lift the S&P 500 index.
All 11 major S&P sectors were higher, topped by the
financial index’s 0.78 percent gain.
Trading volume is expected to be light, with the U.S. market
closing early at 1 p.m. ET (1700 GMT). It will be shut on
Tuesday for Independence Day.
On Friday, the S&P 500 scored its biggest gain for the first
half of the year since 2013, while the Nasdaq Composite’s
first-half gain was its best in eight years.
“The start to the third quarter is getting off on a
promising note as the futures point to a higher opening in
pre-holiday volume,” said Peter Cardillo, chief market economist
at First Standard Financial.
“On the domestic front, we look for mixed-to-positive
manufacturing data and a slight uptick in construction spending.
In this abbreviated trading session, we look for positive market
action as investors focus turns to the economy.”
The Institute for Supply Management’s U.S. factory activity
for June is expected to have increased to a reading of 55.1 from
54.9 in May. The data is expected at 10 a.m. ET.
U.S. construction spending is likely to have rebounded 0.2
percent in May from a 1.4 percent dip recorded in April.
At 9:35 a.m. ET, the Dow Jones Industrial Average was
up 96.62 points, or 0.45 percent, at 21,446.25, the S&P 500
was up 11.64 points, or 0.48 percent, at 2,435.05.
The Nasdaq Composite was up 31.27 points, or 0.51
percent, at 6,171.69.
Oil resumed its longest stretch of daily rallies in more
than five years after data pointed to moderating U.S. output,
though analysts said news of rising OPEC production could cap
Shares of Tesla were up 2 percent after the luxury
electric-car maker said it would deliver its mass-market Model 3
sedan to first 30 customers on July 28.
Bank of America edged up 0.9 percent after Berkshire
Hathaway invoked its right to acquire 700 million
shares of the bank, making it the lender’s top shareholder.
Bankrate jumped 9.3 percent after the company said
it would be bought by digital marketing company Red Ventures for
Advancing issues outnumbered decliners on the NYSE by 1,974
to 580. On the Nasdaq, 1,504 issues rose and 761 fell.
(Reporting by Tanya Agrawal; Editing by Anil D’Silva)