Stocks soar on strong manufacturing data
US factory output expanded in September, bucking the contraction pattern seen in China, Japan and the eurozone. 3M will buy Ceradyne for $860 million.
Stocks surged Monday after a surprising manufacturing report showed that activity climbed in September. Monday's rally comes after a turbulent previous week that ended a positive quarter.
The Dow Jones Industrial Average ($INDU) was up 147 points at 13,584. The S&P 500 ($INX) was up 12 points at 1,452. The Nasdaq Composite ($COMPX) was up 9 points at 3,126.
U.S. Institute for Supply Management's September manufacturing index climbed from 49.6 in August to 51.5 in September, rising above 50 -- signalling expansion rather than contraction. Economists expected a reading of 49.7, according to Briefing.com. It's the first time since May that U.S. manufacturing expands.
Another manufacturing index, the final Markit U.S. Manufacturing Purchasing Managers Index, fell from 51.5 in August to 51.1 in September -- the lowest in three years -- as foreign demand for U.S. goods fell sharply. A level above 50 indicates expansion.
Construction spending in August fell 0.6% after falling 0.9% in July.
Much of the attention last week focused on Spain, as many observers expect the country to ask for international aid soon. The country last week detailed its 2013 budget plan and reported the results of its banks' stress test, both of which didn't cause markets too much alarm. Spain remains in focus after Moody's Investors Service said the upcoming recapitalization of Spanish banks is credit positive but ultimately may be "insufficient."
Greece's government, too, will unveil its budget later on Monday. It will likely contain tough austerity measures as the country is poised to enter its sixth year of recession.
Europe still struggling
In the eurozone, the number of jobless people climbed to a record high rate of 18.196 in August as the area's economy continued to struggle. The jobless rate in August remained unchanged at 11.4% of the workforce. With the economy struggling, the rate is likely to increase further.
Indeed, the final reading of the purchasing managers index, or PMI, for the eurozone manufacturing ticked higher from 45.1 to 46.1 but remained below 50 -- a level that's signalling contraction in activity -- for the 14th consecutive month.
Still, European stocks moved higher to rebound from last week's losses, which were driven mostly by Spain's woes, and despite weak data out of China.
Labor market in focus
While focus last week was on Spain, and Monday investors are paying attention to factory data, it's the labor markets that all eyes will turn to this week. Figures from ADP about private-sector jobs and weekly initial jobless claims will set the stage for Friday's monthly nonfarm payroll report from the Labor Department.
Stocks to watch
3M Co. (MMM) has agreed to acquire Ceradyne (CRDN) for $35 a share, which is a 43% premium over the its Friday close. The transaction has an aggregate value of about $860 million, or $670 million net of cash, cash equivalents, short-term investments and debt acquired, 3M said. Excluding one-time costs, the transaction will add about a penny a share to 3M's earnings in the first 12 months after the deal closes, the company said.
Nokia (NOK) and Oracle (ORCL) are expected to announce a deal that will give Oracle's customers access to Nokia's mapping service.
Apple (AAPL) shares advanced, shaking some of last week's losses on the heels of initial iPhone 5 sales that disappointed some analysts. On Friday, CEO Tim Cook apologized for the flawed mapping software.
The U.S. Defense Department on Friday awarded United Launch Alliance, which is a 50-50 joint venture of Lockheed Martin (LMT) and Boeing (BA), a $1.17 billion contract to provide satellite launches using its Delta IV and Atlas V rockets.
Monster Worldwide (MWW) advanced after DealReporter said the company may receive a takeover bid.
Airline stocks such as United Continental (UAL), Delta (DAL) and US Airways (LCC) may be active, as European airlines gained after the International Air Transport Association increased its 2012 profit forecast for the industry.
Honeywell International (HON) said Monday it'll pay $525 million in cash to buy a 70% stake in Thomas Russell Co., a privately held maker of technology and equipment for natural gas processing and treating.
I quess the Wall Street bankers know that Bernanke is going to double down on QE5 and announce today that starting today the Federal Reserve will be buying not $40 billion not $80 billion but $250 billion mortgages a month to make the banks healthy once again.
Surprised the Dow is not up 800 points today.
And that those short term US T-bills that are all coming due in three months all $5 trillion dollars worth that nobody is rolling over as they figure the US is done for now. Well Bernanke is going buy all of those also.
Yep it's going to busy down at the Federal Reserve in the coming months.
But then again, SMOKE & MIRRORS are his strong suit, so at least games like this are something he's well practiced at.....
More protests in Spain and France. The Eurozone is going to break up.
Oh my gosh -- HOLD THE PRESSES -----
Obama has found 20,000,000 new jobs that the labor department had over looked. Adding those jobs for the past 6 months Obama now has the highest job creation rate in history. Even better than the build up in W.W. II
The economy is saved (as is Obama's job) and what we had thought would be another huge deficit spending year is going to turn out to be a huge surplus
And the Arab nations have decided to allow the USA to rule them directly as colonies which means free oil for us gas is going down to 10 cents a gallon folks the cost of refining.
Michelle -- Obama dear wake up, Obama wake up it's time to face the Chinese landlords and explain how we are not going to be able to meet the interest payment on the debt this month.
Obama -- What??? I was having the lovest dream , people were back at work the economy was making money hand over fist and Bernanke had retired the printing presses. Is the situation still in a horrible mess???
Michelle -- Yes dear and please get up you know how mad our Chinese rulers get when we are late to their meetings.
The brainwashing continues. The administration can say and do whatever they want and the media will justify their actions. For the most part the media in the United States is controlled by this administration. Sure hope history doesn't repeat itself.
I have a question, how is the next President going to bring this country back together to get anything done in Washington? This administration has divided the country just to get re-elected. So are they for the country or their party?
FIX THE ECONOMY GRUBBERS or relocate off Earth. Tempers and frustrations are mounting and all you can do is make more. Where do YOU go once YOU have screwed the whole world?
Close the banks. End the Federal Reserve. Get RID of Wall Street. If we aren't 100% invested in job recovery RIGHT NOW, we won't be here by the New Year.
36 days until the election. We will see some window dressing #'s to make things look rosy- that will be revised downward once the election is over. We had a number revised downward last week and it was stated as " a downward revised FINAL ESTIMATE" - what a joke.
These are the 2 pressing issues that bother me about this administration -
1. Fast & Furious - neither Eric Holder nor President Obama have acknowledged they know anything about this. I am not politically correct so - I will go ahead and call both of these people LIARS - We lost a border patrol agent and his family has no closure!
2. The attacks on 9/11/2012 in Benghazi, Libya where the Ambassador to Libya Chris Stevens, a state department computer expert and 2 former U. S. Navy SEAL commandos were killed was also swept under the carpet..
I do not want any Commander In Chief regardless of party turning his/her nose on such tragic news. These 2 events should be enough to make everyone think - does this President have the best interest of the American citizen at heart.
Does any American citizen NOT believe that the familes of these dead Americans deserve a full explanation and APOLOGIES ON NATIONAL TV to say the Adminstration screwed up and lied?
Eric Holder should be prosecuted and put in jail! President Obama should be impeached!
Wall street speculators always come up with some BS to make the stocks jump. Its a jOKE!!!!
Think about it if you were selling something and your bonus depended on if you could sell it ,you would get something as a sales gimmick.
No more crap, MG... BUSINESSES HIRE, Presidents do not. Take your narrow-minded position and relocate. We need hired-in executives of Founder-less businesses pulled out of those leased office suites and replaced with HONEST business people. Most countries other than ours have already figured that out.
Copyright © 2014 Microsoft. All rights reserved.
The company is lowering its soda machine projections for the second half of the year, however.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.