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Stocks surge on strong
manufacturing numbers
NEW YORK >> Investors sent stocks surging yesterday, propelling the Dow Jones industrials up more than 115 points and into the shadow of 10,000 after a pair of reports showed better-than-expected growth in the nation's manufacturing sector and construction spending.
Retail stocks dipped although stores had solid sales over the Thanksgiving weekend.
Investors returned to the market with enthusiasm following a holiday week of lighter trading, and the manufacturing report from the Institute for Supply Management contributed to their zeal, said Todd Leone, managing director of equity trading at SG Cowen Securities.
"I think a lot of people were off last week, so they're coming in and buying today," Leone said. "Construction spending was good, but these ISM numbers have really pushed the market up."
Advancers outnumbered decliners more than 3 to 1 on the New York Stock Exchange. Consolidated volume was moderate, with 1.74 billion shares traded, ahead of the 491.10 million shares traded Friday, when the market closed at 1 p.m. for the holiday weekend.
The Dow closed up 116.59, or 1.2 percent, at 9,899.05, following a gain last week of 1.6 percent. The last time the index of 30 actively traded blue chip stocks closed higher was May 31, 2002, when it ended the day at 9,925.30; it last closed above 10,000 on May 24, 2002.
The Nasdaq composite index closed at its highest point in nearly two years, up 29.56, or 1.5 percent, at 1,989.82.
The Standard & Poor's 500 index rose 11.92, or 1.1 percent, to close at 1,070.12. The Russell 2000 index ended the day up 8.08, or 1.5 percent, at 554.59.
The price of the Treasury's 10-year note closed down 17/32 point, while its yield rose to 4.40 percent from 4.33 percent late Friday. Two-year Treasury notes were down 3/32 point and yielded 2.10 percent, up from 1.92 percent late Friday.
Manufacturing grew for a fifth straight month, according to the ISM report, boding well for the overall economy in the final quarter of the year. The industry group's manufacturing index rose to 62.8 last month from 57 in October. An index reading above 50 indicates expansion; one below 50 indicates that manufacturing activity is contracting. From March through June, the manufacturing index was below 50.
Separately, the Commerce Department reported construction spending registered its best month on record in October, a promising sign for the recovery's staying power. The total value of building projects in October came in at a seasonally adjusted $922 billion -- a 0.9 percent increase over the previous month. Analysts forecast a rise of 0.6 percent.
The Walt Disney Co. rose 8 cents to $23.17, following news that vice chairman Roy E. Disney had stepped down from the board of directors and called on chairman and CEO Michael Eisner to resign.
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