Wall Street ended sharply higher in the beginning of a new trading month on Monday after data showed U.S. personal income rose more than expected in December and manufacturing sector improved significantly in January.
All three indexes opened with gains and marched steadily higher through most of the session, finishing near their session highs.
The Dow Jones rose 118.20, or 1.17 percent, to 10,185.53. The Standard & Poor’s 500 index jumped 15.31, or 1.43 percent, to 1, 089.18 and the Nasdaq was up 23.85, or 1.11 percent to 2,171.20.
The market regained its upward momentum after the Commerce Department said personal income advanced 0.4 percent in December,
Also lifting market sentiment, the Institute of Supply Management’s manufacturing index rose to 58.4 in January, the highest level in more than five years. The reading easily topped economists’ expectation and showed a significant improvement from December’s downwardly revised level of 54.9, reassuring the market that the manufacture sector was well on the way to the recovery.
U.S. president Barack Obama proposed a 3.83-trillion-dollar budget on Monday, sending the federal deficit to a record high of 1.56 trillion dollars. However, the plan includes 100 billion dollars in stimulus spending aimed at job growth and is geared at lowering the deficit in the longer term with a three-year spending freeze.
Other economic data on Monday weren’t as strong as the ISM manufacturing data, continuing the recent hot-and-cold style in economic data that have kept the stock market in check.
Consumer spending, which accounts for about 70 percent of total economic activity, increased by 0.2 percent in December, less than analysts’ forecasts of 0.3 percent but still the third increase in a row.
Construction spending, meanwhile, slumped 1.2 percent in December, much worse than economists had projected.
On company news front, Exxon Mobil, the world’s largest publicly traded oil company, rose 2.7 percent after posting quarterly results better than analysts had estimated on average, helping push fellow oil company higher.
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