WALL STREET JUMPS ON MANUFACTURING DATA
Wall Street jumped on Wednesday as an increase in United States manufacturing activity and new signs of growth in China and Australia boosted investor confidence on the state of the global economy, Reuters reported on Wednesday.
Major indexes rose more than two per cent, after a closely watched report showed US manufacturing grew faster than forecast and chalked up a 13th straight month of expansion.
'That ISM manufacturing number looks pretty solid, particularly since everybody has been dreading just any data because it's been so bad,' said Dan Cook, senior market analyst at IG Markets in Chicago.
'It's backing up what happened in China and Australia.'
US markets rose initially after reports showed China's manufacturing staged a moderate rebound, while Australia's economy grew at its fastest pace in three years, on a boost in household spending.
The Dow Jones industrial average gained 220.54 points, or 2.20 per cent, to 10,235.26. The Standard & Poor's 500 Index climbed 25.92 points, or 2.47 per cent, to 1,075.25. The Nasdaq Composite Index advanced 55.45 points, or 2.62 per cent, to 2,169.48.
Shares of aluminum producer Alcoa Incorporated gained 2.6 per cent to $10.48, while Freeport McMoRan Copper & Gold Incorporated climbed 5.5 per cent to $75.94. Metals prices advanced on the Chinese data, lifting copper to its highest level in more than four months.
The overseas data helped boost oil futures 2.6 per cent to $73.80 a barrel and lifted the energy sector. The NYSE Arca Oil index rose 3.6 per cent.
Investors shrugged off a report from ADP Employer Services that showed US private firms unexpectedly cut 10,000 jobs in August and government data indicating US construction spending fell to its lowest rate in 10 years.
Shares of Burger King Holdings Incorporated gained 9.3 per cent to $17.99. The number two US hamburger chain may put itself up for sale and has already talked with potential buyers, a source said.
Apple Incorporated rose 2.7 per cent to $249.67 ahead of its expected unveiling of a snazzier line of iPods later Wednesday and plans to reinvigorate its long-neglected TV line.