New York: US stocks rose on Monday, following three weeks of losses, on stronger-than-expected US manufacturing data and results from Exxon Mobil Corp that beat Wall Street estimates.
The Institute for Supply Management’s manufacturing index showed the sector grew in January at a faster rate than expected, echoing strong manufacturing data from China, Australia and the euro zone.
Exxon shares rose 2.2% to $65.81 after the largest US oil company reported natural gas products boosted results at the company’s exploration arm. The S&P energy sector index rose 2%.
“The ISM number looks good on all fronts,” said Alan Lancz, president of Alan B. Lancz & Associates Inc in Toledo, Ohio. “The market is coming off an oversold condition, so it’s responding.”
The Dow Jones industrial average gained 91.59 points, or 0.91%, to 10,158.92. The Standard & Poor’s 500 Index rose 10.83 points, or 1.01%, to 1,084.70. The Nasdaq Composite Index added 11.46 points, or 0.53%, to 2,158.81.
Shares of industrial materials companies gained on the strong global manufacturing data, with aluminum company Alcoa Inc up 3% to $13.11 and US Steel Corp adding 3.8% to $46.11
Reaction to US President Barack Obama’s fiscal 2011 budget proposal was muted. The budget projected the deficit soaring to a post-World War Two high of $1.56 trillion, or 10.6% of gross domestic product but falling to half that level by the time his term ends in 2012.
Meanwhile, a top European Union official said Greece’s fiscal cutback plans were ambitious but achievable, relieving some of the anxiety that drove investors away from risky assets, including stocks, in recent weeks.