Shares of industrial and transportation companies rose amid mounting optimism about the outlook for economic growth.

Investors are increasingly hopeful that the Federal Reserve can finesse a "soft landing," holding interest rates at a level that will cool inflation without causing an outright recession.

That would lead to a kind of "Goldilocks scenario" for the stock market, with economic growth warm enough to stir profit growth but not too hot for fears of Fed policy and inflation to spread.

Economists at brokerage Goldman Sachs Group reduced the odds of a 2023 recession to one in four from a previous estimate of roughly one in three.

Blue Bird shares fell after the school-bus maker said affiliates of investment firms Coliseum Capital Management and American Securities intend to offer 5 million shares for sale.

Stellantis rose after the maker of Jeeps and other cars overhauled its senior design leadership.

Boeing shares fell after the aerospace and defense company said it found new glitches with its 787 Dreamliner jets.

ABM Industries rallied after the provider of maintenance services posted earnings growth ahead of Wall Street expectations.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

06-06-23 1651ET