The Institute for Supply Management said its index of national factory activity rose to 55.9 in December, above forecasts for a reading of 54.3 and above a threshold of 50 that indicates expansion.
This is what we need in 2010 for a v-shaped recovery, said Alan Lancz, president of Alan B. Lancz & Associates in Toledo, Ohio.
Being over the 50 level is important, but having an increase on top of that especially bodes well. It looks like we're off to a fresh start for the year, and the economy is continuing to roll along.
The Dow Jones industrial average <.DJI> gained 134.82 points, or 1.29 percent, to 10,562.65. The Standard & Poor's 500 Index <.SPX> rose 13.47 points, or 1.21 percent, to 1,128.60. The Nasdaq Composite Index <.IXIC> jumped 32.33 points, or 1.42 percent, to 2,301.47.
On the first trading day of the year, energy stocks gained as crude oil futures advanced 2.3 percent to hit a two-month high on concerns over a supply dispute between Russian and Belarus as well as a weaker U.S. dollar.
The Philadelphia semiconductor index <.SOXX> jumped nearly 2 percent after Robert W. Baird upgraded Intel Corp to outperform on expectations for a rebound in corporate PC spending. Shares of the Dow component climbed 2.8 percent to $20.96.
Morgan Stanley advanced 3.9 percent to $30.74 after Credit Suisse upgraded the company to outperform.
(Editing by Jeffrey Benkoe)