[h=3]By MATT JARZEMSKY[/h]Stocks mostly rose after a reading on September factory activity showed an unexpected expansion.
The Dow Jones Industrial Average climbed 100 points, or 0.8%, to 13537, in Monday afternoon trading, trimming an earlier gain of as much as 161 points.
Plenty of investors, spooked by faltering U.S. growth prospects, have struck out for more exotic locales in hope of snaring juicier returns. They might have been better off sticking closer to home. Spencer Jakab reports on Markets Hub.
The Standard & Poor's 500-stock index climbed six points, or 0.4%, to 1447. Energy and financial shares led the index while the telecommunications, utilities and technology sectors lagged behind.
The Nasdaq Composite Index dropped three points, or 0.1%, to 3114. Technology shares in the Nasdaq, which carry a heavy weighting in the benchmark, retreated.
The Institute for Supply Management's manufacturing purchasing managers' index for September rose to 51.5 from 49.6 a month earlier. The result bucked economists' expectation for a fourth straight monthly reading lower than 50, which indicates a contraction in activity.
"Manufacturing is a pillar of growth for the U.S. economy and a leading indicator of corporate profits," said Doug Cote, chief market strategist at ING Investment Management, which oversees $165 billion in assets. "It's a great positive surprise. I think this raises the chances that third-quarter profits might squeak out a positive gain year over year."
Spending on construction projects fell for the second straight month in August, the Commerce Department said. The drop was bigger than economists had expected.
European markets rallied after Spain's bank "stress tests," released after the Continent's markets closed Friday, showed a smaller-than-expected capital shortfall. The euro zone's manufacturing purchasing managers' index for September was revised up.
The Stoxx Europe 600 jumped 1.4%, extending gains after the U.S. manufacturing report. Spain's IBEX 35 index climbed 1%.
In Asia, Japan's Nikkei Stock Average fell 0.8% after the Bank of Japan's business-sentiment index declined in September from June, marking the fourth straight quarter of negative readings. Chinese and South Korean stock markets were closed for a holiday.
Crude-oil prices rose 0.2%, to $92.36 a barrel, while gold prices added 0.4%, to $1,781.30 a troy ounce, retreating from an intraday high for the year hit earlier in the session. The dollar lost ground against the euro but rose versus the yen.
In corporate news, Tenet Healthcare jumped after the hospital operator announced a $500 million stock-buyback program and said it would make $400 million in acquisitions in the near term.
Goldman Sachs Group rose after an article in Barron's suggested the firm's stock could rise at least 25% within a year.
Ceradyne soared after the ceramic-materials maker agreed to be acquired by 3M for $860 million, a 43% premium to Friday's closing price.
Transocean climbed after the oil-services company said a Brazilian court partially lifted a ban that allows the company to continue operations in Brazil except at the site of an oil spill last November.
Callaway Golf rose after Raymond James analysts boosted their rating on the stock to "strong buy" from "market perform," saying Callaway's revamped product lineup and marketing efforts will help the golf gear maker return to profitability next year.
Write to Matt Jarzemsky at [email protected]
The Dow Jones Industrial Average climbed 100 points, or 0.8%, to 13537, in Monday afternoon trading, trimming an earlier gain of as much as 161 points.
Plenty of investors, spooked by faltering U.S. growth prospects, have struck out for more exotic locales in hope of snaring juicier returns. They might have been better off sticking closer to home. Spencer Jakab reports on Markets Hub.
The Standard & Poor's 500-stock index climbed six points, or 0.4%, to 1447. Energy and financial shares led the index while the telecommunications, utilities and technology sectors lagged behind.
The Nasdaq Composite Index dropped three points, or 0.1%, to 3114. Technology shares in the Nasdaq, which carry a heavy weighting in the benchmark, retreated.
The Institute for Supply Management's manufacturing purchasing managers' index for September rose to 51.5 from 49.6 a month earlier. The result bucked economists' expectation for a fourth straight monthly reading lower than 50, which indicates a contraction in activity.
"Manufacturing is a pillar of growth for the U.S. economy and a leading indicator of corporate profits," said Doug Cote, chief market strategist at ING Investment Management, which oversees $165 billion in assets. "It's a great positive surprise. I think this raises the chances that third-quarter profits might squeak out a positive gain year over year."
Spending on construction projects fell for the second straight month in August, the Commerce Department said. The drop was bigger than economists had expected.
European markets rallied after Spain's bank "stress tests," released after the Continent's markets closed Friday, showed a smaller-than-expected capital shortfall. The euro zone's manufacturing purchasing managers' index for September was revised up.
The Stoxx Europe 600 jumped 1.4%, extending gains after the U.S. manufacturing report. Spain's IBEX 35 index climbed 1%.
In Asia, Japan's Nikkei Stock Average fell 0.8% after the Bank of Japan's business-sentiment index declined in September from June, marking the fourth straight quarter of negative readings. Chinese and South Korean stock markets were closed for a holiday.
Crude-oil prices rose 0.2%, to $92.36 a barrel, while gold prices added 0.4%, to $1,781.30 a troy ounce, retreating from an intraday high for the year hit earlier in the session. The dollar lost ground against the euro but rose versus the yen.
In corporate news, Tenet Healthcare jumped after the hospital operator announced a $500 million stock-buyback program and said it would make $400 million in acquisitions in the near term.
Goldman Sachs Group rose after an article in Barron's suggested the firm's stock could rise at least 25% within a year.
Ceradyne soared after the ceramic-materials maker agreed to be acquired by 3M for $860 million, a 43% premium to Friday's closing price.
Transocean climbed after the oil-services company said a Brazilian court partially lifted a ban that allows the company to continue operations in Brazil except at the site of an oil spill last November.
Callaway Golf rose after Raymond James analysts boosted their rating on the stock to "strong buy" from "market perform," saying Callaway's revamped product lineup and marketing efforts will help the golf gear maker return to profitability next year.
Write to Matt Jarzemsky at [email protected]