US close: Stocks end higher as investors shrug off disappointing manufacturing data

US stocks ended the first trading day of December on a positive note as investors shrugged off disappointing manufacturing data.

The Dow Jones Industrial Average ended up 1%, the S&P 500 closed 1.1% higher and the Nasdaq rose 0.9%.

ISM index hits six year-low

On the macroeconomic, the US ISM manufacturing index fell to its lowest level since July 2009 last month, sliding to 48.6 from 50.1 and falling short of analysts’ expectations for a 50.5 reading.

"After yesterday’s dire Chicago PMI number, Tuesday offered up the first contraction in the ISM manufacturing index for three years, as the overall figure hit a six-year low,” said Chris Beauchamp, senior market analyst at IG. “This muddies the waters considerably on a Fed rate hike, and may well provide the cover the Fed seeks should it choose not to move in December.”

The final reading of the Markit manufacturing purchasing managers’ index for November declined from 54.1 in October to 52.8, reaching its lowest level since October 2013, although the figure was marginally above the 52.6 flash estimate released last month.

Stocks pared gains after the data but soon recovered.

Elsewhere, figures showed construction spending rose a seasonally-adjusted 1% in October, exceeding analysts’ expectations and marking the highest level since December 2007.

The main data release this week will be Friday’s non-farm payrolls report, which is expected to show the US economy added 200,000 jobs in November.

Many market participants are convinced that a solid jobs report could cement the chance of a rate hike by the Fed this month.

Investors were also looking ahead to Thursday’s rate announcement from the European Central Bank, which is widely expected to announce additional stimulus measures after the bank’s chief Mario Draghi said the ECB was prepared to act to boost inflation in the Eurozone.

In company news, software group Infoblox surged after reporting better-than-expected results late on Monday, while HF Financial jumped after agreeing to a $139.4m takeover offer from Great Western Bancorp.

On the downside, truck engine maker Cummins slid after Bank of America downgraded its rating on the stock, saying the US truck market is weakening faster than expected.

The dollar was down 0.6% against the euro, 0.1% against the pound and 0.2% against the yen, while spot gold was up 0.4% at $1,069.25.

Oil prices edged lower, with West Texas Intermediate down 0.2% to $41.58 a barrel and Brent crude 1% weaker at $44.18 a barrel.

S&P 500 - Risers

CONSOL Energy Inc. (CNX) $8.65 +9.77%

Wynn Resorts Ltd. (WYNN) $66.81 +6.44%

Eli Lilly and Company (LLY) $86.50 +5.44%

Tenet Healthcare Corp. (THC) $34.94 +5.27%

American Airlines Group (AAL) $43.25 +4.82%

Aetna Inc. (AET) $107.50 +4.62%

Chesapeake Energy Corp. (CHK) $5.51 +4.55%

Anthem Inc (ANTM) $135.76 +4.13%

Micron Technology Inc. (MU) $16.57 +4.02%

Mylan Inc. (MYL) $53.07 +3.45%

S&P 500 - Fallers

Cummins Inc. (CMI) $92.41 -7.93%

CF Industries Holdings Inc. (CF) $45.00 -2.49%

Peabody Energy Corp. (BTU) $11.13 -2.37%

FMC Corp. (FMC) $41.97 -2.33%

Genworth Financial Inc. (GNW) $4.95 -1.88%

eBay Inc. (EBAY) $29.05 -1.82%

Agilent Technologies Inc. (A) $41.06 -1.79%

International Paper Co. (IP) $41.19 -1.53%

Caterpillar Inc. (CAT) $71.56 -1.50%

Pitney Bowes Inc. (PBI) $21.34 -1.25%

Dow Jones I.A - Risers

Unitedhealth Group Inc. (UNH) $116.30 +3.19%

Merck & Co. Inc. (MRK) $54.57 +2.94%

Pfizer Inc. (PFE) $33.63 +2.62%

Walt Disney Co. (DIS) $115.36 +1.67%

Boeing Co. (BA) $147.78 +1.60%

Microsoft Corp. (MSFT) $55.22 +1.60%

Goldman Sachs Group Inc. (GS) $193.04 +1.59%

Procter & Gamble Co. (PG) $75.95 +1.48%

JP Morgan Chase & Co. (JPM) $67.61 +1.39%

International Business Machines Corp. (IBM) $141.28 +1.33%

Dow Jones I.A - Fallers

Caterpillar Inc. (CAT) $71.56 -1.50%

Apple Inc. (AAPL) $117.34 -0.81%

E.I. du Pont de Nemours and Co. (DD) $67.30 -0.06%

Nasdaq 100 - Risers

Wynn Resorts Ltd. (WYNN) $66.81 +6.44%

American Airlines Group (AAL) $43.25 +4.82%

Sba Communications Corp. (SBAC) $109.45 +4.08%

Micron Technology Inc. (MU) $16.57 +4.02%

Mylan Inc. (MYL) $53.07 +3.45%

Alphabet Inc. Class C (GOOG) $767.00 +3.29%

Nvidia Corp. (NVDA) $32.75 +3.25%

Whole Foods Market Inc. (WFM) $30.07 +3.16%

Tesla Motors Inc (TSLA) $237.19 +3.01%

Alphabet Inc. Class A (GOOGL) $783.79 +2.74%

Nasdaq 100 - Fallers

Vimpelcom Ltd Ads (VIP) $3.40 -5.56%

eBay Inc. (EBAY) $29.05 -1.82%

Incyte Corp. (INCY) $112.21 -1.78%

Baidu Inc. (BIDU) $214.11 -1.77%

Bed Bath & Beyond Inc. (BBBY) $53.88 -1.17%

Check Point Software Technologies Ltd. (CHKP) $86.50 -0.91%

Apple Inc. (AAPL) $117.34 -0.81%

PACCAR Inc. (PCAR) $51.59 -0.71%

O'Reilly Automotive Inc. (ORLY) $262.33 -0.58%

Yahoo! Inc. (YHOO) $33.71 -0.30%