Fin24

Manufacturing data boost US stocks

2012-05-02 07:28

New York - A better-than-expected read on US manufacturing in April and encouraging construction data drove Wall Street shares higher on Tuesday as traders shrugged off some poor earnings reports.

The Dow Jones Industrial Average was up 65.92 points, at 13,279.55 at the closing bell.

The broad-based S&P 500 index gained 7.97 to 1,405.88, while the tech-heavy Nasdaq gained 4.08 to 3,050.44.

The market got its charge from the Institute for Supply Management's manufacturing index, which registered a solid jump for April, rising to 54.8% from 53.4% in March. Analysts had expected a fall.

In addition, a reading on construction spending in March also held positive signs - it showed strength in private-sector building even though the overall data was being held back by government spending cutbacks.

"It's a relief to see some better US economic data, particularly after the spate of negative news lately," said Jennifer Lee at BMO Capital Markets.