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US STOCKS-Wall St jumps 2 pct on manufacturing data

Published 09/01/2010, 10:54 AM
Updated 09/01/2010, 10:56 AM
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* Manufacturing rises, construction spending falls

* Private employers unexpectedly cut jobs-ADP

* China, Australia data ease economic concern

* Indexes up: Dow 2.2 pct, S&P 2.5 pct, Nasdaq 2.6 pct

* For up-to-the-minute market news see [STXNEWS/US] (Adds ISM, construction spending data)

By Chuck Mikolajczak

NEW YORK, Sept 1 (Reuters) - Wall Street jumped on Wednesday as an increase in U.S. manufacturing activity and new signs of growth in China and Australia boosted investor confidence on the state of the global economy.

Major indexes rose more than 2 percent after a closely watched report showed U.S. manufacturing grew faster than forecast and chalked up a 13th straight month of expansion. For details, see [ID:nN01115840]

"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."

U.S. 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. [ID:nTOE68001O] and [ID:nSGE67U0L3]

The Dow Jones industrial average <.DJI> gained 220.54 points, or 2.20 percent, to 10,235.26. The Standard & Poor's 500 Index <.SPX> climbed 25.92 points, or 2.47 percent, to 1,075.25. The Nasdaq Composite Index <.IXIC> advanced 55.45 points, or 2.62 percent, to 2,169.48.

Shares of aluminum producer Alcoa Inc gained 2.6 percent to $10.48, while Freeport McMoRan Copper & Gold Inc climbed 5.5 percent to $75.94. Metals prices advanced on the Chinese data, lifting copper to its highest level in more than four months. [ID:nLDE6800SB]

The overseas data helped boost oil futures 2.6 percent to $73.80 a barrel and lifted the energy sector. The NYSE Arca Oil index <.XOI> rose 3.6 percent.

Investors shrugged off a report from ADP Employer Services that showed U.S. private firms unexpectedly cut 10,000 jobs in August and government data indicating U.S. construction spending fell to its lowest rate in 10 years [ID:nN01115648] and [ID:nN01121972]

Shares of Burger King Holdings Inc gained 9.3 percent to $17.99. The No. 2 U.S. hamburger chain may put itself up for sale and has already talked with potential buyers, a source said. [ID:nSGE68006Y]

Apple Inc rose 2.7 percent 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. (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

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