Investing.com - U.S. stocks rose on Tuesday even after a key factory report missed expectations, as the figure was viewed by markets as strong enough to indicate a more robust third quarter awaits the U.S. economy.
At the close of U.S. trading, the Dow 30 rose 0.77%, the S&P 500 index rose 0.67%, while the NASDAQ Composite index rose 1.14%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was down 3.72% at 11.14.
The Institute for Supply Management reported earlier that its purchasing managers' index fell to 55.3 in June from 55.4 in May, which was little changed.
Analysts had expected the manufacturing PMI to increase to 55.8 in June, though stocks rose anyway, as any reading over 50 marks expansion.
New orders rose to a six-month high, which drew applause on Wall Street.
Elsewhere, upbeat June auto sales helped fuel the rally, as even General Motors Company (NYSE:GM) released numbers that pleased investors.
On Monday, General Motors were briefly halted after the automaker said it was recalling another 7.6 million cars.
Leading Dow Jones Industrial Average performers included International Business Machines (NYSE:IBM), up 2.83%, Visa Inc (NYSE:V), up 1.80%, and Pfizer Inc (NYSE:PFE), up 1.31%.
The Dow Jones Industrial Average's worst performers included Goldman Sachs Group Inc (NYSE:GS), down 0.37%, Coca-Cola Company (NYSE:KO), down 0.18%, and J P Morgan Chase & Co (NYSE:JPM), down 0.10%.
European indices, meanwhile, ended the day higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 0.86%, France's CAC 40 rose 0.87%, while Germany's DAX rose 0.71%. Meanwhile, in the U.K. the FTSE 100 rose 0.87%.
On Wednesday, the U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to release data on factory orders.
Later Wednesday, Fed Chair Janet Yellen is to speak at an event in Washington; her comments will be closely watched.