U.S. stocks rally to start 2012

The U.S. stocks rallied on Tuesday, the first trading day of 2012, as investors welcomed a batch of upbeat economic data. The Dow Jones industrial average gained 179.82 points, or 1.47 percent, to 12,397.38. The Standard & Poor's 500 was up 19.46 points, or 1.55 percent, to 1,277.06. The Nasdaq Composite Index rose 43.57 points, or 1.67 percent, to 2,648.72. With no more bad news coming from Europe, investors finally focused on the latest batch of data, showing the economic recovery was picking up speed in the world's largest economy. According to the Commerce Department, construction spending increased 1.2 percent in Nov. and reached the highest level since June 2010. The Institute for Supply Management said the U.S. manufacturing sector expanded at a swifter pace. The ISM PMI rose to 53.9 in Dec. from 52.7 in November, topping estimates of 53.2. Meanwhile, the minute of the Federal Reserve's monetary policy meeting in December showed that officials will begin disclosing more details about their interest rate forecasts, which was also positive to stocks. Adding to the cheer, data from China and India showed their manufacturing sectors were improving in the last month of 2011, easing concerns for a prominent economic slowdown in major developing countries. A report from HSBC showed the Purchasing Managers'Index in India rose to 54.2, the most in six months, from 51 in November, while in China, the index unexpectedly jumped from 49 to 50.3. Not only equities started the new year with big wins, commodities also shot up as investors start the new year with a fresh round of trading. Oil prices rose and surpassed 100 dollars a barrel on Tuesday as better-than-expected economic data spurred optimism of increased demand and geopolitical worry surrounding Iran raised concern about supply. Light, sweet crude for Feb. delivery rose 4.13 dollars, or 4.2 percent to settle at 102.96 dollars a barrel on the New York Mercantile Exchange. Gold futures rebounded from a weak Dec. and settled above 1,600 dollars an ounce after traded as high as 1,608.70 dollar an ounce.