* Construction spending unexpectedly rises in Sept
* Investors look ahead to Fed meeting, mid-term elections
* Futures up: S&P 6 pts, Dow 53 pts, Nasdaq 8 pts
* For up-to-the-minute market news see []
(Updates with manufacturing, construction data)
By Angela Moon
NEW YORK, Nov 1 (Reuters) - U.S. stocks kicked off a new
month with strong gains on Monday after data showed strength in
industrial activity in the United States and China, fueling
risk appetite.
The Dow and Nasdaq indexes rose about 1 percent after the
pace of growth in the U.S. manufacturing sector quickened
unexpectedly in October, while construction spending rose
unexpectedly in September. For details, see [] and
[]
Commodity shares were boosted by the data, including
Freeport-McMoRan Copper & Gold Inc <FCX.N>, up 1.5 percent
$96.11, and the S&P energy index <.GSPE>, rising 1.3 percent.
Oil futures <CLc1> jumped 2.7 percent.
"There's been a lack of good economic news, and this is
certainly helpful with the market, particularly (at this level)
and (with) earnings expectations remaining high," said Bruce
Bittles, chief investment strategist at Robert W. Baird & Co in
Nashville, Tennessee.
The Dow Jones industrial average <> jumped 110.57
points, or 0.99 percent, at 11,229.06. The Standard & Poor's
500 Index <.SPX> was up 10.93 points, or 0.92 percent, at
1,194.19. The Nasdaq Composite Index <> advanced 21.02
points, or 0.84 percent, at 2,528.43.
Boosting the Dow industrials, Intel Corp <INTC.O> rose 2.5
percent to $20.55 after Macquarie increased its price target on
the chipmaker's stock and raised the U.S. semiconductor sector
to positive. []
Key base metals prices rose, with copper rallying, after
data showed manufacturing in China expanded at the fastest pace
in six months in October and on expectations the U.S. Federal
Reserve will add monetary stimulus this week.
The Fed looks likely to announce it will relaunch heavy
bond buying after two days of meetings end Wednesday. Most
analysts expect the size and the scope of asset purchases to be
about $100 billion a month, starting with a plan to buy $500
billion in bonds between now and early 2011.
In Tuesday's mid-term congressional elections, Republicans
were predicted to take control of the U.S. House of
Representatives, while Democrats are seen retaining control of
the Senate, setting up the prospect of legislative gridlock.
[]
Financial stocks were pressured by M&A and bankruptcy
news.
Wilmington Trust Corp <WL.N> fell 44 percent to $4.01 after
M&T Bank Corp <MTB.N> agreed to buy the troubled U.S. regional
bank and wealth manager at a bargain price. []
Ambac Financial Group Inc <ABK.N> tumbled 37 percent at 51
cents after the bond insurer, once the largest in the U.S.,
said it may file for bankruptcy protection this year.
[]
(Reporting by Angela Moon; additional reporting by Leah
Schnurr; editing by Jeffrey Benkoe)
