Companies associated with large construction projects, such as Dow component Caterpillar (CAT.N) and Terex Corp (TEX.N), were among the top gainers. Shares in energy and engineering companies also benefited.
"Look at the sectors that are working, anything infrastructure-related is getting a lift," said Kevin Kruszenski, head of listed trading at KeyBanc Capital Markets in Cleveland. "Definitely the people who make 'stuff' is on the on the upside."
Signals that the Big Three automakers -- General Motors (GM.N), Ford (F.N) and Chrysler -- were closer to procuring a financial lifeline from the government to stave off possible bankruptcy also boosted investor sentiment. Both GM and Ford soared over 14 percent.
The Dow Jones industrial average jumped 261.48 points, or 3.03 percent, at 8,896.90. The Standard & Poor's 500 Index rose 25.97 points, or 2.96 percent, at 902.04. The Nasdaq Composite Index gained 50.51 points, or 3.35 percent, at 1,559.82.
The advance pushed the S&P 500 into positive territory for the month and extended the index's recovery since it hit an 11-year low on Nov 21. The index is up 20 percent since November 21 but remains 38.6 percent lower on the year.
There's "some chance" that markets hit their bottom on November 21, Bob Doll, global chief investment officer for equities at BlackRock (BLK.N), told the Reuters Investment Outlook Summit. "I think we've broken the downtrend and gone sideways."
After Friday's dismal payrolls data showed the economy shed more than half-a-million jobs in November, Obama took center stage at the weekend by outlining plans for the largest infrastructure investment since the 1950s in a bid to create at least 2.5 million jobs by 2011.
Analysts say Obama's plan could cost at least $500 billion.
Shares of Caterpillar, a maker of construction and mining equipment, climbed over 14 percent to $43.66 on the New York Stock Exchange, while Terex, a maker of capital equipment for construction, rose 19 percent to $16.19.
Jacobs Engineering (JEC.N) gained nearly 14 percent to $48.20, and Shaw Group (SGR.N) jumped over 16 percent to $18.91.
However, diversified manufacturer 3M Co (MMM.N), a Dow component, slumped 6 percent to $56.24 after it issued a profit warning.
GM rose to $4.68, and Ford climbed to $3.19.
The Senate is back in session on Monday and negotiators hope to have an auto aid package ready that can be quickly approved and sent to President George W. Bush as one of the last measures he signs into law before Obama succeeds him as president on January 20.
(Editing by Leslie Adler)
No comments:
Post a Comment