Stocks rose on Tuesday after a survey showed the U.S. manufacturing sector returned to growth in August after a prolonged slump.

The Institute for Supply Management said its index of national factory activity rose to 52.9 in August, ahead of economists forecasts, representing the first expansion in more than a year and a half.

In further evidence the economy is on the road to recovery, pending home sales raced to a two-year high in July, rising 3.2 percent compared to economists' forecast for a 2 percent rise. The Dow Jones home construction index <.DJUSHB> rose 2.3 percent.

Both cases, the home sales and ISM, are continued information for investors who are worried that we should expect a pullback, said Linda Duessel, market strategist at Federated Investors in Pittsburgh. This is tough one for the bears ... This data makes it hard to see September as being the negative that people were expecting.

The Dow Jones industrial average <.DJI> rose 13.31 points, or 0.14 percent, at 9,509.59. The Standard & Poor's 500 Index <.SPX> added 2.67 points, or 0.26 percent, at 1,023.29. The Nasdaq Composite Index <.IXIC> climbed 15.34 points, or 0.76 percent, at 2,024.40.

(Additional reporting by Ryan Vlastelica; Editing by Padraic Cassidy)