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Stocks rise following revised manufacturing report

By WTOP Staff

KEN SWEET
AP Markets Writer

NEW YORK (AP) — Stocks closed mostly higher on a quiet Monday following two reports that showed the manufacturing industries of the world’s two largest economies expanded last month.

Both the Dow Jones industrial average and the Standard & Poor’s 500 index were able to set record highs for a second trading day in a row.

The Dow rose 26.46 points, or 0.2 percent, to 16,743.63. The S&P 500 rose 1.40 points, or 0.1 percent, to 1,924.97 and the Nasdaq composite fell 5.42 points, or 0.1 percent, to 4,237.20.

The Institute for Supply management said U.S. manufacturing grew at a brisk pace last month, correcting its earlier statement that growth had slowed. The ISM said the correct number for its manufacturing index was 55.4 in May, in line with what economists were expecting. That’s a better result than the 53.2 figure that ISM initially reported.

The ISM manufacturing report is one of two closely watched reports each month, second only to the government’s monthly survey of the job market. To see major revisions to such a report the day it’s released was highly unusual, traders said, especially for a report that is so relied on each month.

“It’s a debacle, as far as ISM is concerned,” said Tom di Galoma, head of fixed income rates at ED&F Man Capital. “It’s hurt their credibility and it’s going to take a while for that to recover.”

Investors also got some positive manufacturing news out of Asia. A Chinese manufacturing index edged up to 50.8 in May from 50.4 in April.

Asian stocks rose on the report. Japan’s Nikkei rose 2.1 percent Monday.

Trading is expected to be quiet until later this week. Investors will get the May jobs report Friday, and the European Central Bank will announce its latest interest rate policy decision Thursday.

Economists expect that companies hired 220,000 workers last month, and that the unemployment rate remained steady at 6.3 percent, according to FactSet.

Other than the manufacturing reports, traders had little news to work with on Monday.

The real-estate investment trust Ventas said it would buy American Realty Capital Healthcare Trust in a $2.6 billion cash-and-stock deal. The companies each own medical care offices along with other properties. A.R.C.’s stock rose 96 cents, or 10 percent, to $10.91 while Ventas fell $1.87, or 3 percent, to $64.93.

Semiconductor maker Broadcom was the biggest advancer in the S&P 500, jumping $2.97, or 9 percent, to $34.84. The company said it is exploring options for its cellular chip business, which could include selling the division or shutting it down.

The yield on the 10-year Treasury note rose to 2.53 percent from 2.48 percent on Friday. Even with the modest increase, bond yields are still trading near their lows for the year. Bond investors expect yields to remain at these levels for the foreseeable future.

“You’re still looking at a global economic picture that needs a lot more growth,” said Robert Tipp, chief investment strategist for Prudential Fixed Income.

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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