Wall Street rises on strong euro zone data
Stocks rose on Monday, building on last week's gains and tracking a rise in global equities, after strong European industrial data reassured investors the global economic rebound was on track.
Industrial companies with significant overseas exposure advanced, with heavy equipment maker Caterpillar Inc rising 1.7 percent to $61.25 and technology bellwether Intel Corp up 1.4 percent to $20.92.
The appreciation of the euro as well as the positive economic news overseas are driving the market, said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
It's just a question of whether that momentum can persist past European markets close, he said.
The Dow Jones industrial average <.DJI> gained 63.18 points, or 0.62 percent, to 10,274.25. The Standard & Poor's 500 Index <.SPX> rose 7.23 points, or 0.66 percent, to 1,098.83. The Nasdaq Composite Index <.IXIC> added 23.55 points, or 1.05 percent, to 2,267.15.
The S&P faces a psychological hurdle at the 1,100 level and then a technical one near 1,108, its 200-day simple moving average.
SanDisk Corp jumped 7 percent to $47.67 after financial weekly Barron's, citing an analyst, said the stock could soar on a boom in demand for flash memory.
European shares hit a four-week high after April euro zone industrial output surged at the biggest pace year-on-year in almost two decades, easing concerns that a slowdown in Europe could curb global growth.
A burst of short-covering also helped lift the euro as sentiment toward risky assets improved. The common currency has been a barometer for European stability, with U.S. stocks tracking its movements.
Oil futures climbed 2.3 percent to $75.51 per barrel on renewed optimism about a recovery. The S&P energy sector <.GSPE> gained nearly 1 percent.
But BP Plc's U.S.-traded shares fell 6.7 percent to $31.68 as U.S. President Barack Obama was set to press the company to set up an escrow account to pay damage claims by individuals and businesses hurt by the oil spill disaster.
The company said the cost of the spill hit $1.6 billion.
Last week, the Dow rose 2.8 percent, the S&P gained 2.5 percent, and the Nasdaq advanced 1.1 percent.
(Editing by Jeffrey Benkoe)
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