U.S. stocks gain on economic data

U.S. stocks closed higher after a seesaw session on Tuesday as upbeat economic data outweighed retreats in financial and technology sectors.

Stocks rallied in early session on strong reports from manufacturing and housing industries. An index on manufacturing activity from the Institute for Supply Management rose from 52.6 in September to 55.7 in October, the highest level since April 2006. It was the third straight month of growth after 18 months of contraction.

Meanwhile, the National Association of Realtors said pending home sales increased for the eighth straight month in September. The index rose 6.1 percent from August to 110.1, exceeding economists' expectation of 103.8. It was the highest reading since December 2006 and more than 21 percent above a year ago.

A surprise profit from Ford also helped support the early gains. Ford said it earned nearly one billion U.S. dollars in the third quarter due to deep cost cuts and the government's Cash for Clunkers rebates.

Stocks fluctuated in afternoon trading as weak financial and tech shares dragged major indexes down to negative area. More volatility is expected ahead as investors await the monthly unemployment report and Federal Reserve's policy briefing.

Commercial lender CIT Group Inc. filed for bankruptcy protection on Sunday after a debt-exchange offer to bondholders failed. The market seemed unfazed about the bankruptcy, one of the biggest in U.S. corporate history, as the lender has been struggling for months to restructure its debt, which has been priced in.

The Dow Jones rose 76.71, or 0.79 percent, to 9,789.44. Broader indexes also went higher. The Standard & Poor's 500 index added 6.69, or 0.65 percent, to 1,042.88 and the Nasdaq climbed 4.09, or 0.20 percent, to 2,049.20.

Source:Xinhua