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US STOCKS-Oil, manufacturing data boosts Wall St

Published 07/01/2009, 11:00 AM
Updated 07/01/2009, 11:08 AM
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* Global manufacturing data offsets weak jobs report

* Oil and commodity prices edge higher

* Indexes up: Dow 1.5 pct, S&P 1.3 pct, Nasdaq 1.4 pct

(Updates to mid-morning)

By Edward Krudy

NEW YORK, July 1 (Reuters) - U.S. stocks rose on Wednesday as manufacturing data from key global economies pointed to improving economic conditions.

The data lifted natural resource and energy stocks as oil and commodities prices rose, helped by a weaker U.S. dollar.

U.S manufacturing was slightly stronger in June and up from May, according to the Institute of Supply Management. Similar surveys from Europe also showed manufacturing contracting less than initially thought or in China's case, growing modestly.

"The energy and basic material stocks are leading the market higher this morning on a weaker dollar and strength in the Chinese manufacturing," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

Crude oil futures climbed more than 1.6 percent back above $71 per barrel, helping shares of Exxon Mobil Corp, up 1.8 percent to $71.14, and Chevron Corp up 2 percent to $67.57.

Stronger manufacturing PMI data from China boosted metal prices and helped shares in natural resource companies like Freeport-McMoRan Copper & Gold Inc, up 3.8 percent to $52.97, and Alcoa Inc, up 1.3 percent to $10.46.

The data also offset figures from the ADP payroll report on Wednesday that showed a U.S. economy still struggling as private employers cut 473,000 jobs in June -- more than the 393,000 cuts expected from a Reuters survey but down from the 485,000 jobs lost in May.

The Dow Jones industrial average gained 127.95 points, or 1.51 percent, to 8,574.95. The Standard & Poor's 500 Index rose 12.08 points, or 1.31 percent, to 931.40. The Nasdaq Composite Index added 25.82 points, or 1.41 percent, to 1,860.86.

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