Dow, Nasdaq Up in Early Afternoon Trading

Wall Street extended its advance Monday as investors welcomed reports that showed strong growth in the nation’s manufacturing sector and a hefty rise in construction spending.

The economic figures were “dynamite,” said Alfred E. Goldman, chief market strategist with A.G. Edwards & Sons Inc. in St. Louis, and part of a trend of positive news that’s added to the markets’ momentum since the rally first began in March. But he warned there may be some pullback ahead.

“It’s positive for the long term, but short term we’ve come an awful long way in a short period time,” Goldman said. “I think the odds favor some sort of pause to refresh.”

In early afternoon trading, The Dow Jones industrial average was up 78.30, or 0.8 percent, at 9,879.42, having gained 2.3 percent last week.

The broader market gauges were also higher. The Nasdaq composite index was up 27.89, or 1.4 percent, at 1,960.10, following a weekly advance of 3.6 percent. The Standard & Poor’s 500 index was up 8.08, or 0.8 percent, at 1,058.79, having risen 2.1 percent.

Wall Street was pleased with news that the manufacturing sector grew in October for the fourth straight month. The Institute of Supply Management said its manufacturing index rose to 57 last month from 53.7 in September, a stronger showing than the 55.5 analysts expected.

An index reading above 50 indicates expansion; one below 50 indicates that manufacturing activity is contracting. From March through June, the manufacturing index was below 50.

Also Monday, a government report showed that construction spending reached an all-time monthly high in September, underscoring the housing market’s role in the economic recovery. The Commerce Department reported a 1.3 percent jump in the total value of all building projects. Analysts projected a more modest advance of about 0.4 percent.

Good economic data, merger news and generally strong financial results helped the markets climb last month. But with the earnings season winding down, investors may have little incentive to send stocks higher.

In third-quarter results announced Monday, cable firm Charter Communications Inc. swung to a profit, beating analysts expectations. Charter dipped 6 cents, at $4.21.

Kellogg Co. also beat Wall Street expectations, reporting a 14 percent rise in earnings on strong sales. A bright outlook for the full year helped the cereal maker gain was up $1.38, at $34.51

Teva Pharmaceutical Industries Inc. also posted solid earnings on stronger-than-expected sales. The Israel-based drug company was up $1.29, at $58.21.

Advancers outnumbered decliners about 3 to 1 on the New York Stock Exchange. Volume was at 558.55 million shares traded, compared with 589.47 million at the same point Friday.

The Russell 2000 index, which tracks smaller company stocks, was up 8.16, or 1.5 percent, at 536.38.

Overseas, Japan’s Nikkei stock average finished 1.3 percent lower Monday. In afternoon trading in Europe, France’s CAC-40 advanced 2 percent, Britain’s FTSE 100 rose 1.1 percent and Germany’s DAX index gained 2.4 percent.

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