While you were sleeping: GM, Ford rally on sales

Wall Street again climbed to record highs, as the latest US new car sales data exceeded analysts' expectations and bolstered shares of General Motors and Ford Motor.

GM rose 3.1% and Ford 2.1% after both reported better-than-expected sales for September. GM chief economist Mustafa Mohatarem said all the key US economic indicators pointed toward continued economic growth and stability, while regions devastated by recent hurricanes would continue to recover, helping to spur new and used vehicle sales.

"The overall strength of the US economy is the main force driving the market," Mr Mohatarem said in a statement. "With the US economy strengthening, retail sales should remain strong for the foreseeable future."

Wall Street moved higher. At the close of trading in New York, the Dow Jones Industrial Average was up 84.07 points, or 0.4%, to 22,641.67, its 44th record close this year.

The Nasdaq Composite Index added 0.2% to 6531.71 and the Standard & Poor's 500 Index also increased 0.2% to 2534.58, also both record highs.

American Express and Intel, both up 1.1%, led the Dow higher. Bucking the trend, Microsoft and Nike fell 0.4% and 0.3% respectively.

Investors are focused on the latest US jobs data due in the coming days, with the ADP employment report on Wednesday, weekly jobless claims on Thursday and the government's nonfarm payrolls report on Friday.

"There weren't too many economic numbers on tap today, but some stories are starting to focus on the upcoming payroll numbers on Friday," Peter Jankovskis, co-chief investment officer of Lisle, Illinois-based Oakbrook Investments, told Bloomberg. "People are really focused on looking ahead to that employment number."

Bonds likely to fall
US Treasuries rose, pushing yields on the 10-year note one basis point lower to 2.33%.

Meanwhile, investors are ramping up bets the world's largest bond market will decline further, Bloomberg reported.

A JP Morgan Chase survey for the week through October 2 found that clients as a whole soured on Treasuries, with 44% holding a short position relative to their benchmark. That's the most since 2006 and up from 30% in the previous corresponding period, according to Bloomberg

Among those who actively place bets, such as speculative accounts, a record 70% were short.

In Europe, the Stoxx 600 Index finished 0.2% higher. France's CAC 40 Index rose 0.3%, the UK's FTSE 100 advanced 0.4% and Germany's DAX Index climbed 0.6%.

(BusinessDesk)