A report of weaker-than-anticipated manufacturing activity last month was a partial contributor to Monday's advance, in which the Dow gained nearly 192 points to close at 14,087.55, a new high. The blue chips returned to the 14,000 level for the first time since mid-July, before the credit market crisis began pummeling stock prices.
With the start of the fourth quarter Monday, institutional investors were moving heavily into stocks, but trading was also influenced by a growing belief that the worst of the credit problems may have passed. Third-quarter earnings warnings from Citigroup Inc. and UBS AG convinced investors that the coming quarter will see a return to healthier results for financial institutions hurt by failing mortgages.
Dow futures for December rose 21, or 0.1 percent, to 14,178. Standard & Poor's 500 futures rose 1.20, or 0.08 percent, to 1,557.80. Nasdaq 100 index futures added 3.50, or 0.16 percent, to 2,138.75.
Stock markets advanced overseas. Britain's FTSE 100 gained 0.45 percent, Germany's DAX index rose 0.50 percent, and France's CAC-40 rose 0.74 percent. Japan's Nikkei stock average closed up 1.19 percent.
In corporate news, Palm Inc., the maker of the Treo smart phone, reported late Monday that it swung to a loss in the fiscal first quarter and forecast weaker-than-expected results for the current quarter.
[Associated Press; by Lauren
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