U.S. stocks rise on economic report
NEW YORK, March 1 (UPI) -- U.S. stock traders Tuesday ignored a weak manufacturing report for February and focused on encouraging construction data.
The Dow Jones industrial average rose 63.77 points, or 0.59 percent, to close at 10,830.00 on a volume of 1.3 billion shares. The Nasdaq composite gained 19.53 points, or 0.95 percent, ending the day at 2,071.25, and the Standard & Poor's 500 increased 6.81 points, or 0.57 percent, closing at 1,210.41.
The Institute for Supply Management's February manufacturing report missed economists' expectations, but the Commerce Department said construction spending set a record in January.
The 10-year Treasury note added 2/32, or 63 cents for each $1,000 invested, for a 4.38 percent yield.
The dollar fell to 104.38 yen from 104.54, and the euro fell to $1.3182 from $1.3243.
Tokyo's Nikkei 225 rose 39.93 points, or 0.3 percent, to settle at 11,780.53, and London's FTSE 100 closed at 5,001.70 after rising 0.67 percent, or 33.20 points.
Construction spending rises
WASHINGTON, March 1 (UPI) -- The U.S. Commerce Department said Tuesday construction spending increased 0.7 percent in January to a seasonally adjusted annual rate of $1.047 trillion.
Spending rose a revised 1.2 percent in December; it was previously reported as rising 1.1 percent.
Wall Street had expected January spending to rise 0.4 percent.
Analysts who forecast outlays to decline pointed to bad weather -- snowstorms in the Midwest and Northeast and flooding rains in the West.
The report showed residential construction spending rose by 0.5 percent to a seasonally adjusted annual rate of $582.3 billion, after a 1.5 percent increase in December.
Non-residential construction spending rose 0.9 percent a second consecutive month. Outlays rose for schools, roads, communications structures and power facilities.
Private construction increased 0.6 percent to a seasonally adjusted annual rate of $805.7 billion, after a 1.2 percent advance in December.
Public construction spending increased, climbing 0.8 percent to $241.6 billion after a 1.5 percent advance the prior month. Federal government construction outlays fell 6.9 percent. State and local spending climbed 1.4 percent.
Manufacturing activity slows
TEMPE, Ariz., March 1 (UPI) -- The Institute for Supply Management said Tuesday U.S. manufacturing activity grew at a reduced pace in February.
The ISM said the manufacturing-activity index for February stood at 55.3, which represented a slowing in activity from January's 56.4 reading. The index was 57.3 in December.
"February was another good month in the manufacturing sector," said Norbert Ore, who directs the survey for the ISM. "While the overall rate of growth is slowing, the overall picture is improving as price increases and shortages are becoming less of a problem."
The group's new orders index slipped slightly to 55.8 after 56.5 in January, while the production index hit 56.7, from the prior month's 57.8.
On the inflation front, manufacturers faced the 36th straight month of rising pressure, although the pace cooled somewhat in February. The group's prices index was 65.5 in February, compared with 69 in January and 72 in December.
Manufacturing payrolls also grew at a softer rate, with that gauge ebbing to 57.4, compared to 58.1 in January.
GM realigns key execs, product development
DETROIT, March 1 (UPI) -- Reeling from a 3.4 percent stock dip after disappointing February sales, General Motors Corp. Tuesday announced a major organizational shakeup.
Among the changes, marketing head John Smith was replaced by GM North America vice president of marketing and advertising Mark LaNeve, the manager credited with turning around the Cadillac division with a stable of new products.
A new position was created for Smith as group vice president of global product planning.
Jim Queen, vice president of GM North America engineering, was named to the new position of vice president of global engineering, and Ed Welburn, head of GM North America design, was named GM vice president of global engineering.
Welburn and Smith will report to Bob Lutz, chairman of GM North America.
"These changes will accelerate our efforts to get more great cars and trucks to market faster, to provide more value to our customers and to increase our global sales," said GM Chairman and CEO Rick Wagoner.
