U.S. stocks made gains Friday to begin October, as investors weighed a mixed U.S. manufacturing report against expectations of further support from the Federal Reserve (Fed). A slightly better-than-expected report on the state of the consumer helped push stocks higher Friday, but it lost some momentum after a key reading of U.S. manufacturing activity fell to a 9-month low. Recent comments from Fed officials raised expectations that the central bank will accelerate its purchases of U.S. Treasury later this year. While the move is designed to aid the economy by keeping long-term interest rates low, some investors worry that it could inflate over the long-term. In economic news, the Institute for Supply Management said its index of manufacturing activity fell to 54.4 in September, form 56.3 in August. Any reading above 50 indicates growth in the sector. The report raised fears that the recovery in manufacturing activity is slowing. Separately, the U.S. Commerce Department said personal income increased 0.5 percent in August, while spending rose 0.4 percent. Economists expected both consumer spending and income to have risen 0.3 percent in August. In company news, BP (British Petroleum) said Friday it will use assets in the Gulf of Mexico as collateral for its $20 billion fund for oil spill victims. BP permanently sealed its Macondo well off the coast of Louisiana on September 19, after the devastating oil spill that lasted for more than 5 months. The U.S. dollar fell to a 6-month low against the euro and also fell versus the yen. Light sweet crude oil for November delivery gained $1.61 to $81.58 a barrel. Gold futures rose $8.20 to another all-time high at $1,317.80 an ounce. The Dow Jones industrial average rose 41.63, or 0.4 percent, to 10,829.68. The broader Standard & Poor's 500 index rose 5.04, or 0.4 percent, to 1,146.24. The technology-heavy Nasdaq composite index rose 2.13, or 0.1 percent, to 2,370.75.
