U.S. stocks post biggest rise since start of year
NEW YORK (MarketWatch) -- Investors turned the page on a dismal January performance for stocks Monday, prompted by strong earnings and manufacturing data to bid the market to its best one-day gain since the year's first trading session. The Dow Jones Industrial Average (DJI:^DJI<http://finance.yahoo.com/q;_ylt=Atbg7hG6gU5DIK07MOb.Z9H0ba9_;_ylu=X3oDMTB0YmF0NWsxBHBvcwMxBHNlYwNuZXdzYXJ0Ym9keQRzbGsDZGpp?s=%5edji>- News<http://finance.yahoo.com/q/h;_ylt=Ap1fM.HzT9NgSQLGPtT0bMf0ba9_;_ylu=X3oDMTB1N2h1ZnF2BHBvcwMyBHNlYwNuZXdzYXJ0Ym9keQRzbGsDbmV3cw--?s=_dji>) ended 118.20 points higher, up 1.2% to 10,185.53. The gains represented the Dow's biggest rise in point and percentage terms since a 156-point gain on Jan. 4. The Dow and other market yardsticks opened with gains and marched steadily higher through most of the session, finishing near their session highs. Some additional buyers entered the market following the late-morning release of new data from the Institute for Supply Management, which said U.S. factory-sector activity booked its best performance in more than five years in January. Hiring continued to recover and inflationary pressures quickened. Monday's rally erased part of January's 3.5% slide in the Dow, the biggest monthly decline since February 2009. The recent pullback coincides with what has generally been a wave of better-than-expected profit reports, though investors often bet last month that share prices had factored in the strong earnings. "People were thinking everything was baked into this market," said strategist Joe Williams, of Commerce Trust Co. "But the mentality is a little different today. People are more open to the idea that the market might have gotten a little ahead of itself to the downside, since we were at the bottom of the recent trading range." The Dow was led Monday by a 2.7% gain in component Exxon Mobil Corp. (NYSE: XOM<http://finance.yahoo.com/q;_ylt=Arl1QGJa4JQE7ZLflPvdbef0ba9_;_ylu=X3oDMTB0cDY5cm0wBHBvcwMzBHNlYwNuZXdzYXJ0Ym9keQRzbGsDeG9t?s=xom>- News<http://finance.yahoo.com/q/h;_ylt=ApVJmI5UUaBRz6ekfQabywb0ba9_;_ylu=X3oDMTB1N2FvM2w0BHBvcwM0BHNlYwNuZXdzYXJ0Ym9keQRzbGsDbmV3cw--?s=xom>) , which posted better quarterly results than analysts expected. The S&P 500 enjoyed an across-the-board rally in all its sectors, pushing the index to an overall gain of 1.4%. The basic-materials category was the strongest, up 3.7%. Energy rose 3%, while financials, technology, industrials, and the consumer-discretionary sector were up more than 1% each. Other economic data on Monday weren't as strong as the ISM manufacturing data. The Commerce Department said construction spending fell in December much more than expected, reflecting commercial real estate weakness. See more on construction.<http://us.rd.yahoo.com/finance/external/cbsm/SIG=13djh2cu0;_ylt=AlDaxlX3wco91SmuQE2KvmP0ba9_;_ylu=X3oDMTE2bGxhOG5vBHBvcwM1BHNlYwNuZXdzYXJ0Ym9keQRzbGsDc2VlbW9yZW9uY29u/*http://cbs.marketwatch.com/news/story.asp?guid={F29A96DD-8505-4090-9AB2-2E69193FC144}&siteid=yhoo> And while personal income rose by more than expected, climbing 0.4% in December, personal spending rose by 0.2%, less than economists had predicted. See more on consumer spending.<http://us.rd.yahoo.com/finance/external/cbsm/SIG=13d80va71;_ylt=AvVqCqT7wHMaN18.jgHk8mz0ba9_;_ylu=X3oDMTE2cGkxcGttBHBvcwM2BHNlYwNuZXdzYXJ0Ym9keQRzbGsDc2VlbW9yZW9uY29u/*http://cbs.marketwatch.com/news/story.asp?guid={4D81D389-37BD-40FC-84A7-CF978583EE1D}&siteid=yhoo> The reports continue a recent string of hot-and-cold data that have kept the stock market in check. While most traders and analysts are confident that the U.S. economy is recovering, there is increasing worry that it is currently enjoying a one-time bump as businesses restock their inventories following the recent financial crisis. In a worst case, that process would run out before consumers are ready to step in to fuel the next wave of demand for goods to drive corporate profits. "The inventory building isn't a bad thing by any means," said portfolio manager Bill Stone, of PNC Advisors in Philadelphia. "But people are going to continue to look for more than just that to hang their hats on." Shares of commodity producers were helped Monday by comments from analysts at Davenport & Co., who touted coal stocks in a client note, citing upbeat outlooks issued by industry executives at a conference last week. The report helped to push Massey Energy (NYSE:MEE<http://finance.yahoo.com/q;_ylt=AjMn6P0e1piyCDdWxIb52ED0ba9_;_ylu=X3oDMTB0dXQ0djVqBHBvcwM3BHNlYwNuZXdzYXJ0Ym9keQRzbGsDbWVl?s=mee>- News<http://finance.yahoo.com/q/h;_ylt=An0BnIBUyAZKZoTNCDCJn_j0ba9_;_ylu=X3oDMTB1OHBkcmN1BHBvcwM4BHNlYwNuZXdzYXJ0Ym9keQRzbGsDbmV3cw--?s=mee>) up 7.9%. Consol Energy (NYSE:CNX<http://finance.yahoo.com/q;_ylt=An9nOBRmeI3k9KYKIMM7Awf0ba9_;_ylu=X3oDMTB0bnJlZGtqBHBvcwM5BHNlYwNuZXdzYXJ0Ym9keQRzbGsDY254?s=cnx>- News<http://finance.yahoo.com/q/h;_ylt=Arr9llFrFcLYQsEBYbtWa_P0ba9_;_ylu=X3oDMTB2YWNhbjJoBHBvcwMxMARzZWMDbmV3c2FydGJvZHkEc2xrA25ld3M-?s=cnx>) was up 7.2% Metals producers rallied. Alcoa (NYSE:AA<http://finance.yahoo.com/q;_ylt=AhoNBELZgW1jMYa36fZiIDb0ba9_;_ylu=X3oDMTB0c3Jwc3E4BHBvcwMxMQRzZWMDbmV3c2FydGJvZHkEc2xrA2Fh?s=aa>- News<http://finance.yahoo.com/q/h;_ylt=Ah8MF0UzBGqX63UiuYI.UVP0ba9_;_ylu=X3oDMTB2ZGN1bjJhBHBvcwMxMgRzZWMDbmV3c2FydGJvZHkEc2xrA25ld3M-?s=aa>) was up 5%. US Steel (NYSE:X<http://finance.yahoo.com/q;_ylt=AnYrWzj9cGl0mUajAnGZzuX0ba9_;_ylu=X3oDMTBzY280OTAyBHBvcwMxMwRzZWMDbmV3c2FydGJvZHkEc2xrA3g-?s=x>- News<http://finance.yahoo.com/q/h;_ylt=AvNYoHjrQfPgbzcMSe7fHmj0ba9_;_ylu=X3oDMTB2Z2VnbDdlBHBvcwMxNARzZWMDbmV3c2FydGJvZHkEc2xrA25ld3M-?s=x>) gained 6.5%. Freeport-McMoran Copper & Gold (NYSE:FCX<http://finance.yahoo.com/q;_ylt=AiSy5dxGTstPj2dePTOhYgb0ba9_;_ylu=X3oDMTB1OGdndDA2BHBvcwMxNQRzZWMDbmV3c2FydGJvZHkEc2xrA2ZjeA--?s=fcx>- News<http://finance.yahoo.com/q/h;_ylt=AnrWhvOZW9.MBMo932J0skD0ba9_;_ylu=X3oDMTB2cWVsZmlpBHBvcwMxNgRzZWMDbmV3c2FydGJvZHkEc2xrA25ld3M-?s=fcx>) rose 7.4%. The Nasdaq Composite (COMP<http://finance.yahoo.com/q;_ylt=AkAOEpPGCmj7LYeKwf.S5gP0ba9_;_ylu=X3oDMTB2MmNjY3ZnBHBvcwMxNwRzZWMDbmV3c2FydGJvZHkEc2xrA2NvbXA-?s=comp>- News<http://finance.yahoo.com/q/h;_ylt=Ah.F6keprMcUVPL958jFxPn0ba9_;_ylu=X3oDMTB2cXJlNnBqBHBvcwMxOARzZWMDbmV3c2FydGJvZHkEc2xrA25ld3M-?s=comp>) rose 1.1%. Its gains were limited by a 5.2% slide in component Amazon.com (NasdaqGS:AMZN<http://finance.yahoo.com/q;_ylt=Ar6s3Xsyn_5F0ikCT3.tF470ba9_;_ylu=X3oDMTB2c3ZtdTNyBHBvcwMxOQRzZWMDbmV3c2FydGJvZHkEc2xrA2Ftem4-?s=amzn>- News<http://finance.yahoo.com/q/h;_ylt=AlWNFELGwQLE3lwCVpUtEzD0ba9_;_ylu=X3oDMTB2Njhhbjk3BHBvcwMyMARzZWMDbmV3c2FydGJvZHkEc2xrA25ld3M-?s=amzn>) after the online retailer conceded defeat in a battle with publisher Macmillan over the price of e-books. Read more on Amazon.<http://us.rd.yahoo.com/finance/external/cbsm/SIG=13dtvj2ic;_ylt=Aihyy.X88NLP1VLPiLffoV30ba9_;_ylu=X3oDMTE3aGdjaGJxBHBvcwMyMQRzZWMDbmV3c2FydGJvZHkEc2xrA3JlYWRtb3Jlb25hbQ--/*http://cbs.marketwatch.com/news/story.asp?guid={47670CA9-61F0-4BDB-B791-970A34C2542C}&siteid=yhoo> Oil futures and gold futures climbed. The dollar weakened against the euro but was higher against the yen. Treasurys fell, with the two-year note off 3/32 to yield 0.859% and the 10-year note down 19/32 to yield 3.662%.
