STOCKS CLIMB, HEWLETT-PACKARD DROPS AFTER EARNINGS LEAK: Here's What You Need To Know

First, the scoreboard:

• Dow: 16,544.0 (+11.0, +0.0%)
• S&P 500: 1,892.6 (+4.6, 0.2%)
• Nasdaq: 4,155.2, (+23.6, +0.5%)

And now the top stories:

• At around 3:30 p.m. ET, Bloomberg spotted a partial release of Hewlett Packard's Q2 financial results, which were scheduled to be released after the closing bell today. According to Bloomberg, the company saw revenue of $27.3 billion versus expectations for $27.4 billion. Earnings came right in line with analysts' expectations at $0.88 per share. Traders' initial reaction was to sell the stock.
• The stage for today's trading action was set by a series of May manufacturing reports from around the world. Overnight, we learned that China's Flash PMI climbed to a 5-month high of 49.7 in May, beating expectations for a 48.3 print. Germany reported that its composite output index rested comfortably a 56.1 in May, which was a bit higher than the 56.0 expected by economists. France, however, unexpectedly signaled that its economy may be contracting. Its composite output index tumbled to a 3-month low of 49.3 in May, which was much worse than the 50.5 expected by economists. "Of greatest concern is France, living up to its moniker of 'sick man of Europe' by sliding back into contraction as Germany continues to enjoy robust growth and the rest of the region experiences its best expansion since mid-2007," said Markit's Chris Williamson.
• The U.S. composite PMI climbed to 56.2 in May from 55.4 in April. Economists were looking for a reading of 55.5. "The US manufacturing sector continued to gain strength heading into mid-year as supportive demand conditions led to the sharpest month-on-month increase in production for over three years," said Markit's Pauls Smith. "This provides further confirmation that industry will aid a rebound in U.S. GDP in the second quarter, and other indicators from the survey suggest that the sector has plenty of momentum heading into the summer and beyond."
• Initial weekly jobless claims jumped to 326,000 from 298,000 a week ago. This was a bit higher than the 310,000 expected by economists. "This is superficially disappointing but the seasonal adjustment for last week's very low number was always a bit suspect," said Pantheon Macroeconomics' Ian Shepherdson. "Taking the two weeks together, though, claims have averaged 314K, well below the pre-Easter trend."
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