The Standard & Poor’s 500 Index rose to a record, after posting the longest streak of quarterly gains since 1998, as a report showed China’s manufacturing expanded in June while U.S. factory data was little changed. Netflix Inc. (NFLX) advanced 5.1 percent after Goldman Sachs Group Inc. recommended investors buy shares in the world’s largest Internet-subscription service. GoPro Inc. jumped 14 percent after three straight days of gains following its initial public offering. Urban Outfitters Inc. dropped 2.1 percent after Wedbush Securities Inc. cut the stock’s rating to the equivalent of hold. The S&P 500 (SPX) climbed 0.4 percent to a record 1,968.55 at 10:05 a.m. in New York. The benchmark equity gauge rose 4.7 percent in the second quarter, a sixth consecutive increase. The Dow Jones Industrial Average rose 95.08 points, or 0.6 percent, to 16,921.67 today. The Russell 2000 Index of smaller companies rallied 1 percent to within four points of its all-time high. Trading in S&P stocks was 16 percent above the 30-day average during this time of the day. “The market is very resilient,� Steve Krawick, president of West Chester Capital Advisor Inc. in Johnstown, Pennsylvania, said in a phone interview. The firm oversees about $900 million. “We had some crisis in Ukraine and the Middle East, but our economy has been stable. We didn’t have a correction when the market had the opportunity to correct in March. We realize the fact that valuations are not cheap, but that doesn’t translate into the end of the bull market.� Economic Reports A report today showed manufacturing in China expanded in June by the fastest pace this year. A purchasing managers’ index rose to 51.0 last month from 50.8 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing said. The reading matched economists’ median estimate. A similar gauge from HSBC Holdings Plc and Markit Economics advanced to 50.7 from the previous month’s 49.4. The Institute for Supply Management’s U.S. factory index was little changed at 55.3 in June from 55.4 in the prior month, the Tempe, Arizona-based group’s report showed today. Readings above 50 indicate expansion. The median forecast of 88 economists surveyed by Bloomberg called for 55.9. Separate data today may show total vehicles sales fell in June to 16.4 million from 16.7 million in May, according to economists surveyed by Bloomberg. Other reports this week may yield further clues on the strength of the U.S. economy. A private release may show U.S. employers hired more workers in June than in the previous month. The official jobs data is due Thursday, a day before the U.S. Independence Day holiday. Record Highs U.S. equities have reached all-time highs, with the S&P 500 gaining 6.5 percent this year, as data from employment to housing fueled confidence that the U.S. economy is rebounding after the worst contraction in gross domestic product since 2009. Federal Reserve Chair Janet Yellen said on June 18 that accommodative monetary policy, rising property and equity prices and the improving global economy should lead to above-trend growth. The S&P 500 trades at 16.7 times the projected earnings of its members, near its highest valuation in four years. The U.S. market has gone more than two years without a 10 percent drop. Investors will get a further chance to assess the economy when companies start releasing financial results in July. Earnings for S&P 500 companies probably grew 5.2 percent during the second quarter while sales rose 3.2 percent, analyst estimates compiled by Bloomberg show. The forecasts are lower than they were at the beginning of April, when analysts projected earnings to rise 7.3 percent and sales to increase 3.7 percent. Earnings Outlook “I was expecting a good performance into the summer months,� Gerhard Schwarz, the Munich-based head of equity strategy at Baader Bank AG, said by telephone. “I’ve been hoping earnings would be better. That’s what’s still missing, but the odds are quite good. Our call was that we might see some improvement in the economic indicators and that was delivered today with the Chinese PMI. So we’re seeing some recovery.� Netflix gained 5.1 percent to $463.16 today. Goldman Sachs boosted its recommendation on the Los Gatos, California-based company to buy from neutral, citing the potential for global subscription growth. GoPro jumped 14 percent to $46.22 amid optimism that revenue tied to users’ shared videos will fuel profit growth. GoPro’s first-person-viewpoint cameras, which let surfers, sky divers and bungee jumpers document their exploits, have attracted a younger generation driven by selfies and sharing adventures on social media. The shares are up 91 percent since their market debut last week. Urban Outfitters slipped 2.1 percent to $33.15 for the biggest retreat in the S&P 500. The apparel retailer was cut to neutral from outperform by Wedbush. American Apparel Inc. declined 2.2 percent to 88 cents. The company’s ousted Chief Executive Officer Dov Charney increased his holding in the retailer to 43 percent, stepping up a battle with the company’s board over his firing from the business he founded 16 years ago. To contact the reporters on this story: Inyoung Hwang in London at ihwang7@bloomberg.net; Lu Wang in New York at lwang8@bloomberg.net To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net; Lynn Thomasson at lthomasson@bloomberg.net Jeff Sutherland

Source