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Stocks rise as surveys show stronger manufacturing

By WTOP Staff

STEVE ROTHWELL
AP Markets Writer

NEW YORK (AP) — A better outlook for global manufacturing pushed the stock market to an all-time high on Tuesday.

The Dow Jones industrial average climbed within two points of 17,000 for the first time after separate surveys showed that manufacturing expanded in China and the U.S., the world’s two biggest economies. In China, manufacturing grew in June for the first time in six months and in the U.S. the sector notched its 13th straight month of growth.

General Motors rose the most in almost a month. The automaker reported that its U.S. sales increased 1 percent in June despite a record-setting string of safety recalls. Netflix jumped after analysts at Goldman Sachs raised their outlook on the stock, predicting the company will benefit from its international expansion.

“The economic news, by and large, isn’t bad here,” said Phil Orlando, chief equity strategist at Federated Investors. “Maybe investors are starting to think that this thing is going to grind higher.”

The Standard & Poor’s 500 index rose 13.09 points, or 0.7 percent, to 1,973.32. The Dow gained 129.47 points, or 0.8 percent, to 16,956.07. The index climbed as high as 16,998.70 in early afternoon trading before falling back slightly. Both indexes closed at all-time highs.

The Nasdaq composite rose 50.47, or 1.1 percent, to 4,458.65.

Stocks climbed from the open after HSBC said its Chinese purchasing managers index rose to 50.7 in June from 49.4 a month earlier. Numbers above 50 signal growth. The market added to its gains after another survey showed that U.S. manufacturing kept growing.

The gains were broad. Nine of the 10 industry sectors that make up the S&P 500 rose. Utilities were the only sector to fall.

Health care stocks had the biggest advance with gains led by Regeneron. The company rose $19.53, or 7 percent, to $301.94 after French drugmaker Sanofi said in a regulatory filing that it had raised its stake in Regeneron.

The S&P 500 index has now gained 6.8 percent this year, after jumping almost 30 percent in 2013. While stocks are no longer cheap, they are still a compelling investment compared with bonds or cash because interest rates are close to zero, said Joe Tanious, a global market strategist at JPMorgan Funds.

“In the long run market prices are dictated by the fundamentals,” said Tanious. “And the underlying fundamentals suggest that markets can move higher from here.”

Government bonds prices fell. The yield on the 10-year Treasury note climbed to 2.56 percent from 2.53 percent late Monday. Bond prices have risen this year, pushing interest rates lower, even as the Federal Reserve has reduced its economic stimulus and the economy has improved.

Among other stocks making big moves:

— Netflix jumped $32.50, or 7.4 percent, to $473.10 after analysts at Goldman Sachs raised their outlook for the streaming video company. Goldman estimates that Netflix’s potential audience of subscribers will double over the next three years as the company expands internationally.

— Twitter rose $1.08, or 2.6 percent, to $42.05 after analysts at Stern Agee raised their estimates for the company’s earnings for next year and said that the social media company should benefit from increased use during the World Cup. The company also said today that it was hiring Anthony Noto, a Goldman Sachs executive, as its new chief financial officer.

— GM gained $1.29, or 3.6 percent, to $37.59 after reporting its June sales figures. Its sales gains were led by the Buick Encore small SUV, which gained 82 percent.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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