Wall Street Rises on Positive Manufacturing Data

Wall Street rose Wednesday on reports showing stabilization in manufacturing activity in the United States and abroad.

The Institute for Supply Management, a trade group of purchasing executives, said Wednesday its manufacturing index read44.8 in June, up from 42.8 in May. The reading indicated the sector contracted less than expected and at the slowest pace since last August. Basic material stocks surged on the report.

Manufacturing data from China, Europe also reinforced hopes that the world's economy is on the road to recovery.

Investors appeared pleased about a fourth straight monthly rise in pending home sales in May. The National Association of Realtors says that its seasonally adjusted index of pending sales increased by 0.1 percent to 90.7, fresh evidence that the housing sector maybe recovering.

However, not all economic data was upbeat. The Commerce Department said Wednesday that construction spending dropped 0.9 percent in May, nearly double the 0.5 percent decline that economists expected.

The ADP Employer Services reported companies in the U.S. cut more jobs than forecast in June, showing the labor market will be slow to improve.

The Dow Jones industrial average rose 57.06 points, or 0.68 percent, to 8,504.06. The Standard & Poor's 500 index gained 4.01 points, or 0.44 percent, to 923.33. The Nasdaq composite index was up 10.68 points, or 0.58 percent, to 1,845.72.