An expansion in U.S. manufacturing in September for
the first time since May helped world stocks start the new quarter on a strong
note on Monday.
Though stocks came off their mid-day highs where they
had risen by more than a percent, major indices ended on a positive note, with
the exception of the Nasdaq.
The Dow Jones Industrial Average(INDEXDJX:.DJI) rose
77.98 points, or 0.58 percent, to 13,515.11 at the close. The S&P
500(INDEXSP:.INX ) advanced 3.82 points, or 0.27 percent, at 1,444.49. NASDAQ
Composite(INDEXNASDAQ:.IXIC) dipped 2.70 points, or 0.09 percent, to close at
3,113.53.
The unexpected uptick in U.S. Manufacturing data was
helped by new orders and a pick-up in employment, according to a report by the
Institute for Supply Management.
Analysts however said that the market had rallied for
a long time and it was due for a correction. The earnings season ahead was
expected to induce volatility in the markets.
Among stocks weighing on the Nasdaq, Apple lost 1.2 percent
to $659.39, dragging the tech-heavy index lower.
Baidu.com, Inc. (ADR)(NASDAQ:BIDU) shares fell 3.5
percent to $112.77 after Jefferies cut the stock to "hold" from
"buy" and lowered the price target to $125 from $135.
A number of blue-chip stocks hit 52-week highs,
helping the Dow outperform the broader market.
Shares of General Electric Company(NYSE:GE) rose 0.4
percent to $22.81, after rising as high as $22.99 earlier. International
Business Machines Corp.(NYSE:IBM) also hit a new 52-week high at $211.75 and The
Travelers Companies, Inc.(NYSE:TRV) rose as high as $69.48 earlier in the
session. IBM shares closed up 1.5 percent at $210.47. The Travelers shares
gained 1.2 percent to $69.07.
While, Sprint Nextel Corporation(NYSE:S) shares
hammered down by over 6% to $5.18, selling off after the recent strength.
Netflix, Inc.(NASDAQ:NFLX) jumped 3% after the company
has made an addition
to its offerings – The “Just for Kids” section on its web interface, set-top
boxes, and gaming consoles.
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