In New York, stocks started 2011 with a bang Monday, with the Dow climbing to a fresh two-year high, as strong reports on manufacturing and construction spending stoked optimism about the economy.
ON WALLSTREET
The Dow Jones Industrials gained 93.24 points to 11,670.80. Earlier in the session, the Dow traded at 11,711 -- its highest intraday level since August 2008.
The S&P 500 got 14.23 points of lift to 1,271.87. The Nasdaq Composite Index surged 38.65 points to 2,691.52
Shares of Bank of America surged more than 5%, making it the biggest gainer on the blue-chip index -- where only three out of the 30 Dow components were trading lower. JPMorgan Chase shares also rose 3.5%.
Bank of America announced Monday that it is taking a charge for faulty mortgages sold to Freddie Mac and Fannie Mae. Bank of America expects to take a provision of about $3 billion U.S. related to the loans and an impairment charge of $2 billion U.S. to fourth-quarter results. The bank has made cash payments of about $1.3 billion U.S. to both Freddie Mac and Fannie Mae.
Shares of Barnes & Noble jumped 7.5%, after the bookseller said its same-store holiday sales rose 9.7% -- helped by demand for its Nook e-reader.
Late Sunday, the New York Times reported Goldman Sachs and an anonymous Russian investor have invested $500 million U.S. in Facebook. The deal values the social networking giant at $50 billion U.S. -- a valuation higher than CNNMoney parent Time Warner, as well as other major media companies. Shares of Goldman Sachs jumped 2.8% in afternoon trading.
Dollar General Corp. shares rose 0.1% in afternoon trading, after the retailer announced plans to create 6,000 new jobs in fiscal 2011, as the company opens 625 new stores throughout the country.
Apple Inc also started the year off on the right foot, with its market value surpassing $300 billion for the first time ever. Shares of Apple rose 2.3% in afternoon trading.
Economically speaking, traders mulled over a report showing the manufacturing industry expanded for the 17th straight month in December, although its rate of growth was not quite as strong as anticipated.
The Institute for Supply Management's manufacturing index for December was expected to have edged up to 57.3 from 56.6 in November, but came in at 57. Any number above 50 indicates growth in the sector.
A report on construction spending also came in after the opening bell, showing a 0.4% rise in November, following a 0.7% rise in October. Economists were looking for an increase of 0.2%.
The most closely watched report of the week will be the government's reading on the U.S. labour market, due Friday. Economists expect employers boosted payrolls by 132,000 last month, following a 39,000 gain in November.
The price on the benchmark 10-year U.S. Treasury remained lower, raising the yield to 3.34% from Friday’s 3.30%. Treasury prices and yields move in opposite directions.
Oil for February delivery climbed $1.87 to $91.71 U.S. a barrel
Gold futures for February delivery gained $1.50 to settle at a record-high close of $1,422.90 U.S. an ounce.
ON BAYSTREET
Toronto markets were off for the New Year holiday. They will be back in business Tuesday.
