U.S. stocks held gains on Tuesday after the Institute for Supply Management's January reading on manufacturing came in higher than expected.

Separate data showed construction spending fell to its lowest level in more than 10 years in December.

The Dow Jones industrial average was up 77.80 points, or 0.65 percent, at 11,969.73. The Standard & Poor's 500 Index added 12.68 points, or 0.99 percent, at 1,298.80. The Nasdaq Composite Index jumped 29.50 points, or 1.09 percent, at 2,729.58.

(Reporting by Ryan Vlastelica)