U.S. stocks rose on Wednesday to the highest in more than two months after a measure of inflation in a manufacturing report fell sharply, soothing investor worries about faster interest-rate hikes by the Federal Reserve. Shares of Google Inc. rose 3.8 percent to $287.81 on Nasdaq after Credit Suisse First Boston raised its price target on the stock to $350 from $275 and maintained its "outperform" rating. The Institute for Supply Management said its index of national manufacturing activity fell to 51.4 in May from April's 53.3, which was weaker than economists' forecast. The prices paid index, a measure of inflation, fell to 58 in May from 71 in April, the institute said, according to Reuters. "The ISM data came in below expectations but still any number above 50 demonstrates growth. Prices paid data showed a lack of inflation. So what you have is an economy that is growing but not inflationary, which gives the Fed plenty of time to continue with their program of measured interest-rate hikes," said Dan McMahon, head of listed trading at CIBC World Markets. The Dow Jones industrial average was up 114.16 points, or 1.09 percent, at 10,581.64. The Standard & Poor's 500 Index was up 13.58 points, or 1.14 percent, at 1,205.08. The technology-laced Nasdaq Composite Index was up 24.94 points, or 1.21 percent, at 2,093.16. --More 2137 Local Time 1837 GMT
