Optimistic investors push markets up to start new year

LOS ANGELES — The new year is starting off as a happy one for the stock market.

The Dow Jones industrial average jumped more than
150 points today as encouraging manufacturing data from the U.S. and
abroad supported hopes that the budding economic recovery would gain
momentum this year.

Despite concern that stocks may have outpaced
underlying economic fundamentals during the market’s vibrant recovery
last year, bulls say share prices can keep moving higher as long as
economic news is good.

“It’s tough to argue against a continued drift upward,” said Dan Greenhaus, market analyst at Miller Tabak & Co. in New York. “The things that have been working are continuing to work.”

The Dow finished with a gain of 155.91 points, or 1.5 percent, to 10,583.96, its highest close since Oct. 1, 2008.

The blue-chip index rose 19 percent in 2009.

Broader market indexes mostly posted sharper gains, and stocks also were up strongly in Europe and Latin America.

The advance was paced by strong manufacturing news.

In the U.S., an industry survey indicated that factory activity grew at a faster-than-expected clip last month. The Institute for Supply Management’s manufacturing index advanced to 55.9 from 53.6 in November.

Surveys released today overseas suggest manufacturing activity in China rose the most in five years and that activity in Europe was the best in 21 months.

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