Stronger Than Expected Factory Data Pushes S&P 500 To New High

Stronger than expected factory data and consumer sentiment helped reduce fears after negative GDP estimates and housing reports, pushing the broad S&P 500 to a new record high.

A reading on consumer sentiment from Thomson Reuters and the University of Michigan rose slightly in late February to 81.6 from 81.2 earlier in the month, topping estimates of 81.3.

The Institute for Supply Management-Chicago reported its gauge of manufacturing in the U.S. Midwest rose to 59.8 in February, compared to 59.6 the month prior. The measurement was higher than the 57 Wall Street was expecting. Readings above 50 point to expansion, while below 50 readings point to contraction.

Also, the National Association of Realtors reported contracts to buy previously-owned homes rose 0.1 percent in January, lower than the 2 percent increase Wall Street anticipated. Sales were down 9 percent from the same period the year prior.

Meanwhile, a report from the Commerce Department showed estimates that the U.S. economy grew at an annual pace of 2.4 percent in the fourth quarter, down sharply from a previous reading of 3.2 percent.