Hijjah, 1431/Dec. 02, 2010, SPA -- U.S. stocks surged over 2 percent Wednesday, as signs of economic strength in the United States and China overshadowed worries about the European debt crisis. Investors welcomed readings on manufacturing activity in China, which helped lift shares of major U.S. companies in the industrial and materials sectors. Meanwhile, comments from the head of the European Central Bank (ECB)—which raised speculation that it is prepared to take additional steps to aid the European economy—eased worries about problems facing the European economies. In U.S. economic news, monthly data from payroll processing firm ADP showed an unexpectedly high gain of 93,000 private sector jobs in November, marking the biggest increase in three years. Separately, the Institute of Supply Management index of manufacturing activity fell slightly in November to 56.6 from 56.9 the previous month, but any reading above 50 signals expansion in the sector. A government report showed that construction spending rose 0.7 percent in October, beating analyst expectations of a 0.5 percent decrease. Meanwhile, the Federal Reserve Beige Book snapshot of economic conditions showed that growth continued to improve in most U.S. regions from early October to mid-November. In company news, General Motors (GM) reported an 11 percent year-over-year increase in November new vehicle sales. Ford also reported a 20 percent rise in monthly sales, while Toyota sales fell 3.2 percent in November. The U.S. dollar fell against the euro and rose against the yen. Light sweet crude oil for January delivery gained $2.63 to $86.73 a barrel on the New York Mercantile Exchange. Gold futures rose $2.20 to $1,387.20 an ounce. The Dow Jones industrial average rose 249.76, or 2.3 percent, to 11,255.78. All 30 Dow components finished higher, with Microsoft, United Technologies, and Alcoa all gaining over 3 percent. Shares of Bank of America were up 1.3 percent after the bank dismissed speculation that the website WikiLeaks had information that could be damaging to the company. The broader Standard & Poor's 500 index rose 25.52, or 2.2 percent, to 1,206.07. The technology-heavy Nasdaq composite index rose 51.20, or 2.1 percent, to 2,549.43.
