S038;P,Nasdaq rise on factory orders

For the past month,stocks have advanced as investors bet on a series of better-than-expected economic indicators. Much of that optimism appeared to remain intact on Tuesday as Samp;P indexes for the financial,materials and energy sectors ended the day higher.

Tuesday marked a new 15-month closing high for the Samp;P 500 and a 16-month closing high for the Nasdaq.

8220;There is nothing in here to suggest that investors are backing away at all from the sentiment expressed yesterday,which is one of increased optimism about the global recovery,8221; said Craig Peckham,equity trading strategist at Jefferies amp; Company in New York.

Peckham pointed to what he termed a 8220;slow and measured march higher8221; in expectations for a better reading in Friday8217;s non-farm payrolls report.

The Dow Jones industrial average fell 11.94 points,or 0.11 per cent,to end at 10,572.02. The Standard amp; Poor8217;s 500 Index rose 3.53 points,or 0.31 per cent,to finish at 1,136.52. The Nasdaq Composite Index crept up just 0.29 of a point,or 0.01 per cent,to close at 2,308.71.

GET YOUR MOTOR RUNNING

Ford Motor Co surged 6.6 per cent to 10.96,hitting a 4-1/2-year closing high following its report that its December sales shot up 33 per cent year-over-year,ending a tumultuous 12 months when rivals GM and Chrysler collapsed into bankruptcy. Earlier in the session,Ford8217;s stock climbed to an intraday high of 11.23.

Earlier Tuesday,the government said US factory orders rose more than expected in November. The report,which suggested the manufacturing sector will continue to support a recovery,was released one day after the Institute for Supply Management8217;s index of manufacturing activity beat estimates.

Financials,energy,materials and consumer discretionary stocks gave the biggest boosts to the Samp;P 500 in a muted rerun of Monday8217;s rally.

The Samp;P financial index led the wider market higher,rising 1.7 per cent,with Citigroup ending up 3.8 per cent at 3.53 on the New York Stock Exchange.

HOME SALES SWING BOTH WAYS

Pending home sales from the National Association of Realtors fell 16 per cent in November compared with economists8217; expectations for a 2 per cent drop.

But stocks of most home builders rose,sending the Dow Jones home construction index up 1.8 per cent. Some analysts said the home sales numbers may have been skewed due to confusion caused by the government8217;s home tax credit,which was set to expire in November,but it was eventually extended to April.

8220;I think people are more willing to shake off these November pending home sales numbers and focus more on that factory orders number,8221; said Marc Pado,US market strategist at Cantor Fitzgerald amp; Co. in San Francisco.

The US dollar edged up 0.15 per cent against a basket of major currencies,curbing gains in the materials and energy sectors. The Samp;P materials index advanced 0.5 per cent,while an Samp;P energy index rose 0.8 per cent.

US oil futures rose 0.32 per cent,or 26 cents,to settle at 81.77 a barrel,the highest closing price since October 9,2008. This marked the ninth day of gains for oil futures prices.

The Dow8217;s top performer was Kraft Foods Inc,which gained 4.9 per cent to 28.77 after Warren Buffett8217;s Berkshire Hathaway voted 8220;no8221; on the company8217;s proposal to issue 370 million shares to help finance its proposed purchase of British chocolate candy maker Cadbury Plc.

Volume was light on the New York Stock Exchange,with 1.19 billion shares changing hands,below last year8217;s estimated daily average of 2.18 billion. On the Nasdaq,about 2.39 billion shares traded.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of 3 to 2. On the Nasdaq,the opposite trend prevailed,with five stocks falling for every four that rose.