Stocks jumped on Wednesday to begin September, with the major indexes gaining 2.5 to 3 percent, as investors welcomed signs of strength in U.S. manufacturing. Stocks opened higher at the session's start as investors cheered a rebound in Chinese manufacturing activity and strong economic growth in Australia. The advance gained momentum after an unexpectedly strong report on U.S. manufacturing activity. A private group said its index of U.S. manufacturing activity rose unexpectedly to 56.3 in August. A reading above 50 indicates growth in the sector. A government report showed construction spending fell 1 percent in July to its lowest level in a decade. In other U.S. economic news, payroll-processing firm ADP reported that employers cut 10,000 jobs in August, in contrast to expectations of adding 13,000, while another private firm reported that planned job cuts plunged to a 10-year low in August. Investors ignored the negative ADP and construction reports. The U.S. dollar fell versus the euro and gained versus the yen. Light sweet crude oil for October delivery rose $2.08, or 3 percent, to $74.03 a barrel on the New York Mercantile Exchange. Gold futures fell $2.20 to $1,248.10 an ounce. In company news, major automakers, including General Motors, Ford Motor, and Toyota, all reported disappointing sales Wednesday in what is expected to be the worst August for U.S. auto sales in 27 years. The Dow Jones industrial average rose 254.75, or 2.5 percent, to 10,269.47. All 30 of the index's components gained, led by industrial and materials companies like Caterpillar, United Technologies, and Boeing. Oil firms ExxonMobil and Chevron also gained as oil prices spiked. The broader Standard & Poor's 500 index rose 30.96, or nearly 3 percent, to 1,080.29. The technology-heavy Nasdaq composite index rose 62.81, or 3 percent, to 2,176.84. Shares of Apple rose nearly 3 percent as the company unveiled its newest iPod media players and Apple TV streaming video device.
