Wall Street rose on Tuesday as U.S. construction spending recorded its largest monthly increase in nearly 10 years and U.S. manufacturing expanded in for a tenth straight month.
The Commerce Department said construction spending rose 2.7 percent, and investment in private construction surged 2.9 percent, the largest increase since July 2004. Also, the Institute for Supply Management's manufacturing index expanded more than expected in May.
The ISM was phenomenal and continues to show expansion, said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. The issues in Europe have yet to be felt here, and the U.S. economy seems to be a global source of strength right now.
The Dow Jones industrial average <.DJI> rose 56.91 points, or 0.56 percent, at 10,193.54. The Standard & Poor's 500 Index <.SPX> added 3.81 points, or 0.35 percent, at 1,093.22. The Nasdaq Composite Index <.IXIC> gained 17.03 points, or 0.75 percent, at 2,274.07.
Markets opened lower after a survey showed euro zone manufacturing activity expanded in May at a more sluggish pace than in April, while separate data indicated the rate of China's factory output eased.
The Nasdaq got a boost from Apple Inc , which rose 3 percent to $264.60 after it said it had sold 2 million of its iPad tablet computers.
On the downside, U.S.-listed shares of BP Plc dropped 11 percent to $38.30 following its failed attempt to stem the Gulf of Mexico oil spill.
In deal news, ev3 Inc surged 17.5 percent to $22.23 premarket after Covidien Plc agreed to buy the medical device maker $2.6 billion. Covidien shares fell 1.7 percent to $41.67.
(Editing by Jeffrey Benkoe)