American stocks surge on strong economic data
NEW YORK -- It's only been a day, but November on Wall Street is already looking a lot better than October.
Strong economic data and corporate news converged Thursday to give U.S. stocks their best day since mid-September. Positive signs about the job market and soaring sales figures pushed stock futures up before the market opened. A half-hour into trading, reports on manufacturing and consumer confidence added another log to the fire.
The Dow Jones industrial average had already risen 100 points when the mid-morning reports came out. The data -- including news that manufacturing grew for the second straight month -- pushed it up as much as 177 points. It fell back some, but held a steady gain for the rest of the day.
The Dow closed up 136.16 points, or 1 percent, at 13,232.62. It was the best day for the Dow since Sept. 13.
The Standard & Poor's 500 index rose 15.43 points, or 1.1 percent, to 1,427.59.
The Nasdaq composite index added 42.83, or 1.4 percent, to 3,020.06.
All three indexes fell in October, their first monthly losses since May.
The 10 a.m. surge came after the Institute for Supply Management said factories are seeing more new orders and increased production. The index has shown growth for the first two months of this quarter, an encouraging sign about the health of corporate America. Before that, manufacturing had decreased for three straight months.
The Conference Board said Americans' confidence in the economy surged last month to the highest level in nearly five years. Many were encouraged by an improving job market, the group said.
Traders watch manufacturing and consumer confidence because factories and consumers are crucial players in the economic recovery.