Dow soars on strong economic report

NEW YORK (AP) — Investors sent stocks soaring Monday after getting a boost of confidence from the latest economic reports and Warren Buffett’s defense of Goldman Sachs.

The Dow Jones industrial average rose 143 points to extend a series of sharp swings over the past week. The Dow and broader indexes all climbed more than 1 percent.

According to preliminary calculations, the Dow rose 143.22, or 1.3 percent, to 11,151.83. The broader Standard & Poor’s 500 index rose 15.57, or 1.3 percent, to 1,202.26, and the Nasdaq composite index rose 37.55, or 1.5 percent, to 2,498.74.

The market rebounded from a drop Friday after a string of welcome news eased some of the concerns that have been dogging investors.

Reports signaled that consumer spending and manufacturing are strengthening. Meanwhile, an aid package for Greece and a vote of confidence by Buffett in Goldman, whose shares he owns, brought a sense among traders that the market will be able to resume its nearly 14-month climb.

Meanwhile, an agreement by United to acquire Continental Airlines Inc. in a stock deal worth about $3 billion indicated that companies are getting more comfortable placing bets on a recovery in the economy.

“The merger in the airlines is great. As you begin to see mergers that means there is value out there,” said Anthony Conroy, managing director and head trader for BNY ConvergEx Group.

Traders funneled money to retail and restaurant stocks after the Commerce Department said that personal spending rose 0.6 percent in March, the biggest increase in five months. However, personal income rose just 0.3 percent. The reports were in line with analysts’ expectations but showed that consumers were pulling money from savings to make purchases.

Manufacturing continued to show broad improvement. Orders have been flowing to factories for months while companies rebuild depleted inventories. The Institute for Supply Management said that US manufacturing activity expanded last month at the fastest pace in nearly six years.