New York: Stocks moved higher on Monday on the first day of trading in the new year, following the lead of overseas markets.
A weakening dollar is also boosting commodities prices and stocks in early trading. An analyst's upgrade of Intel Corp is pushing the technology sector higher.
Asian markets rose after new data showed China's manufacturing sector expanded at its fastest rate in 20 months in December. European markets also gained after the monthly purchasing managers' index, a key gauge of manufacturing activity, for the 16 countries that use the euro rose to a 21-month high and a similar survey for Britain rose to a 25-month high.
In the US, investors will receive key data throughout the week that could show the economic recovery is continuing, including a report on manufacturing Monday. Ongoing signs of a rebound helped the market surge during the final nine months of 2009 from its 12-year lows.
The Institute for Supply Management's manufacturing index is expected to show modest growth in the sector last month. Economists polled by Thomson Reuters, on average, forecast the ISM's index for December will increase to 54 from 53.6 a month earlier.
A separate report from the Commerce Department on Monday is expected to show construction spending dipped 0.4 percent in November.
In early morning trading, the Dow Jones industrial average rose 94.01, or 0.9 percent, to 10,522.06. The Standard & Poor's 500 index rose 11.52, or 1 percent, to 1,126.62, while the Nasdaq composite index rose 31.49, or 1.4 percent, to 2,300.64.
The technology sector was getting a boost after Robert W Baird & Co upgraded chipmaker Intel Corp to ''Outperform'' and increased its price target on the stock to $26.
On Friday, the Labor Department releases its monthly employment report. Considered the biggest economic report of the month, it will likely set the early tone for trading in 2010.
Economists surveyed by Thomson Reuters are forecasting that 23,000 jobs were lost, a further signal that the job market is starting to stabilize. The government said employers cut just 11,000 jobs in November, far fewer than anticipated. That pushed the unemployment rate down to 10 percent.
Bureau Report
First Published: Monday, January 04, 2010, 21:38