Ford Motor Co., Caterpillar Inc. and Alcoa Inc. gained at least 3.3 percent as companies most-tied to economic growth rallied. Joy Global Inc. jumped 5 percent after the maker of mining equipment forecast more earnings than analysts estimated. AT&T Inc. fell 2.9 percent after the U.S. government sued to block its planned $39 billion purchase of T-Mobile USA Inc., saying the deal would curb competition in the wireless market. Sprint Nextel Corp., a rival carrier, rose 6.5 percent.
The Standard & Poor’s 500 Index rose 1.2 percent to 1,227.18 at 10:44 a.m. in New York. The benchmark gauge surged 9.5 percent through yesterday since Aug. 19, recouping 40 percent of its loss since July 22. The Dow advanced 110.42 points, or 1 percent, to 11,670.37 today.
“The stock market is poised for a rebound if data begins to be more encouraging,” Marshall Front, who helps oversee $600 million as chairman of Front Barnett Associates LLC in Chicago, said in an interview. “Stocks have gotten to a point where they are discounting a degree of slowness in the economy that is not likely to evolve.”
Stocks advanced after reports showed U.S. business activity and factory orders expanded at a faster pace than economists forecast. The S&P 500 pared its August decline to about 5 percent, still the biggest monthly retreat since June 2010. U.S. stocks rose yesterday after the Federal Reserve said some policy makers wanted to take more action to stimulate the economy during their meeting this month.
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