The stock market rose on Wednesday as investors were encouraged by a surge in auto sales in August and other signs of strength in the economy.
Shares of General Motors, Ford Motor and Toyota Motor rose after the auto industry reported its best month in six years.
“Car sales were really impressive,” said Peter Cardillo, chief market economist at Rockwell Global Capital, noting that they point to solid consumer spending and increased manufacturing. “It means the economy is holding up,” he said.
The Standard Poor’s 500-stock index rose 13.31 points, or 0.8 percent, to 1,653.08. The Dow Jones industrial average gained 96.91 points, or 0.7 percent, to 14,930.87. And the Nasdaq composite index rose 36.43 points, or 1 percent, to 3,649.04.
Jim Russell, a senior equity strategist at U.S. Bank Wealth Management, said recent economic reports had drawn a brighter picture of the global economy, even as concerns over a possible American military strike on Syria have claimed much public attention.
A trade group said on Tuesday that the nation’s factories increased production last month at the fastest pace since June 2011, propelled by a sharp rise in new orders. Separate reports out on Monday showed stronger manufacturing in Europe and China.
“All of these add up to better economic growth on a global scale,” Mr. Russell said.
On Wednesday, G.M. said that its sales rose 15 percent last month compared with August 2012, while the Chrysler Group and Ford each reported 12 percent gains. Toyota posted the biggest increase as sales rose nearly 23 percent.
G.M. rose $1.71, or 5 percent, to $35.85, one of the biggest gains in the S. P. 500. Ford rose 57 cents, or 3.5 percent, to $16.91.
The Nasdaq stock market ran into technical problems for the second time in two weeks. The exchange reported that its system for disseminating prices failed briefly, from 11:35 a.m. to 11:41 a.m., but it said trading was not affected. On Aug. 22, all trading in Nasdaq-listed stocks was halted for three hours because of a problem with the same quote-disseminating system.
Investors are looking ahead to Friday, when the government will release the August employment report. Economists forecast that employers added 177,000 jobs last month and that the unemployment rate held steady at 7.4 percent, according to the data provider FactSet.
Friday’s jobs report is the last major piece of economic data the Federal Reserve will have to work with before the central bank considers when to begin winding down its economic stimulus program, which has kept interest rates abnormally low.
Among the stocks on the move, Dollar General rose $2.51, or 4.7 percent, to $56.39 after the company reported profits that narrowly beat Wall Street analysts’ estimates. In contrast to some of its competitors, Dollar General said sales at stores open more than a year climbed.
Francesca’s Holdings plunged $6.23, or 26 percent, to $17.79 after it reported results that fell short of Wall Street’s estimates. The company, which operates the Francesca’s retail stores, cut its forecast for full-year earnings, citing poor customer traffic.
Ciena surged $2.86, or 14 percent, to $23.54. The company, which develops high-speed networking technology, reported earnings that exceeded Wall Street expectations, a result of higher revenue and lower costs.
In the bond market, interest rates moved higher. The price of the 10-year Treasury note fell 9/32 to 96 19/32, while its yield rose to 2.90 percent from 2.86 percent late Tuesday.
Article source: http://www.nytimes.com/2013/09/05/business/daily-stock-market-activity.html?partner=rss&emc=rss