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6C Daily News – Tuesday, October 2, 2012 Stocks rise following expansion in manufacturing Wall Street By JOSHUA FREED AP Business Writer U.S. stocks mostly rose on Monday as growth in manufacturing provided more evidence that the economy may be picking up, or at least not getting any worse. news that U.S. manufactur- ing grew in September for the first time in four months. The Institute for Supply Management, a trade group of purchasing managers, also said its gauge of manu- facturing employment rose following a decline in August. That's a hopeful sign that the government's monthly employment report, due out Friday, could come in better than analysts The gains came after have been expecting. Also Monday, the gov- ernment said U.S. builders spent more on home con- struction in August, the lat- est positive sign for the housing market. Investors are looking for signs that there will be more workers with money to spend, said Jerry Webman, chief economist for Oppen- heimerFunds Inc. That can create a ''virtuous cycle'' that generates its own fuel for a recovery. ''If you're going to man- buy some stuff,'' helping the economy, Webman said. It was still a choppy day Club of Indiana. It wasn't clear whether ufacture more you're going to employ more people, and if you employ more people you're going to pay them money, and they're going to on Wall Street. The manu- facturing report came out half an hour after trading began, and sent stocks sharply higher. The Dow Jones industrial average rose as much as 161 points and the Standard & Poor's 500 index rose as much as 1.1 percent. But market indexes gave up most of their gains in the afternoon. The decline start- ed after Federal Reserve Chairman Ben Bernanke said the Fed needs to keep interest rates low because the economy isn't growing fast enough to reduce high unemployment. Bernanke made the remarks in a speech to the Economic investors were reacting directly to Bernanke's remarks or just taking prof- its from a morning in which stocks showed their strongest gains in two weeks. Monday was only the third day since Sept. 17 that the S&P 500 has risen. The S&P closed 0.3 per- cent higher, rising 3.82 points to 1,444.49. The Dow rose 77.98 points to close at 13,515.11. The Nasdaq composite fell 2.70 points to close at 3,113.53. Goldman Sachs jumped $3.18, or 2.8 percent, to $116.86 after Barron's wrote that investors are too pessimistic on the invest- ment bank's prospects. Other financial stocks rose, too. Bank of America rose 13 cents, or 1.5 percent, to $8.96, and JPMorgan Chase rose 49 cents, or 1.2 percent, to $40.97. Monday was the first day of trading of the fourth quarter, and the early gains were a welcome change from the way the last quar- ter ended. U.S. indices fell on Friday for the fifth day out of six. Quincy Krosby, market enue won't be as strong as expected. Markets around Europe rose. Results last Friday of an audit of 14 Spanish banks showed the lenders need $77.6 billion in capi- tal. That was roughly what was expected, and well within the amount Madrid can get from fellow Euro- pean countries. A slight improvement in strategist at Prudential Financial, said investors believe that the news about the economy has stopped getting worse. Besides the U.S. manufacturing news on Monday, she noted that recent data from China suggests that manufactur- ing has improved there as well. ''The numbers were still weak, but they were not as bad as before,'' Krosby said. ''So that was a posi- tive backdrop for the mar- ket.'' Wendy's Co. fell 28 cents, or 6.1 percent, to $4.25 after a Janney Capi- tal Markets analyst lowered his rating on the stock, say- ing he is seeing signs that the hamburger chain's rev- a survey of manufacturing in the 17 countries that use the euro also helped. However, credit rating agency Moody's might downgrade Spain's debt to junk status this week. That's likely to limit enthu- siasm in Europe until the Moody's decision is known. index rose 1.5 percent, France's CAC-40 was up 2.4 percent, and Britain's FTSE 100 rose 1.4 percent. Spain's Ibex was up 1 per- cent. The euro slightly to $1.2886 from $1.2855 late Friday. Treasury note was unchanged from late Fri- day at 1.63 percent. The yield on the 10-year Germany's DAX stock DONATE YOUR VACATION newspaper dollars to the Newspaper In Education Program Support our classrooms, keep kids reading. HELP OUR CHILDREN DAILYNEWS For more details call Circulation Department (530) 527-2151 RED BLUFF TEHAMACOUNTY T H E V O I C E O F T E H A M A C O U N T Y S I N C E 1 8 8 5 PHONE: (530) 527-2151 FAX: (530) 527-5774 545 Diamond Avenue • P.O. Box 220 • Red Bluff, CA 96080