Stocks rise following expansion in manufacturing
U.S. stocks mostly rose on Monday as growth in manufacturing provided more evidence that the economy may be picking up, or at least not getting any worse.
Investors are looking for signs that workers will have more money to spend, said Jerry Webman, chief economist for OppenheimerFunds Inc. That’s a “virtuous cycle” that can generate some of its own fuel for a recovery.
“If you’re going to manufacture more you’re going to employ more people, and if you employ more people you’re going to pay them money, and they’re going to buy some stuff,” helping the economy, Webman said.
The S&P closed 0.3 percent higher, rising 3.82 points to close at 1,444.49. The Dow Jones industrial average rose 77.98 points to close at 13,515.11. The Nasdaq composite fell 2.70 points to close at 3,113.53.
Goldman Sachs jumped $3.18, or 2.8 percent, to $116.86 after Barron’s wrote that investors are too pessimistic on the investment bank’s prospects.