New York City 2/2/2010 2:03:05 AM
Manufacturing Reports Drive Up Stocks at Midday
Financial World New Update by Equities Magazine
All three major Stock indexes rose Monday as positive manufacturing reports pointed in the direction of a recovery. Three consecutive weeks of losses led people to doubt the strength of the recovery but new reports indicating the fastest GDP growth rate since 2003, along with good manufacturing and energy news helped renew confidence. Many doubted whether the 5.7 percent GDP increase was a solid enough indicator to justify the risk of entering the market in its volatile state, but supported by manufacturing rates, investors began trading today. Major indicators opened higher and maintained it through midday trading with the Dow Jones industrial average gaining more than 80 points. Energy stocks, in the hours following earnings reports from Exxon Mobil, were particularly helpful in keeping trading high. Manufacturing was the big winner Monday though as new reports found that U.S. activity increased for the sixth consecutive month to bring its to its highest point in over five years. The ISM's manufacturing index leapt from 54.9 in December to 58.4 in January exceeding analyst expectations of 55.5. Also, positive, the Commerce Department released numbers indicating a 0.2 percent increase in consumer spending. The changes are small but it’s the third straight month of gains for the category which is often the primary indicator for a recovery. About EQUITIES: Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community. Sign up for a free one-year subscription
