US stocks rise on strong auto sales

Wall Street stocks jumped Wednesday after surging US auto sales pointed to robustness in the manufacturing sector. The Dow Jones Industrial Average rose 96.91 (0.65 percent) to 14,930.87. The broad-based S&P 500 added 13.31 (0.81 percent) at 1,653.08, while the tech-rich Nasdaq Composite Index increased 36.43 (1.01 percent) to 3,649.04. Investors were cheered by August double-digit auto sales gains from GM, Toyota, Ford and Chrysler. "We're seeing some strength in the manufacturing sector," said Alan Skrainka, chief investment officer for Cornerstone Wealth Management. A positive regional economies survey from the Federal Reserve described US economic growth as still "modest to moderate" since July. The report showed consumer spending and manufacturing has risen in most of the 12 regions in the US and said job creation was steady or improving. The market gains also came despite continued edginess in the markets over the prospects of a US military strike on Syria. On Wednesday, President Obama reiterated the need for a global response on Syria as a US Senate panel approved a resolution authorizing US military intervention. Ford advanced 3.5 percent after reporting its best retail sales month since August 2006. Total sales increased 12 percent from August 2012. General Motors surged 5.0 percent after retail sales jumped 22 percent year-on-year, notching the best performance since September 2008. Technology giant Apple gained 2.1 percent after it set September 10 for an event that is expected to be the unveiling of its new iPhone line, which could include a range of colors and a low-priced version. According to reports Apple also plans a media event in China on September 11. Pipeline and energy infrastructure company Kinder Morgan fell 6.0 percent after Jefferies initiated coverage with a "hold" recommendation. Jefferies expressed concern that high capital spending for maintenance could crimp dividend payouts. LinkedIn shed 2.9 percent after announcing it planned a public offering of about $1 billion worth of shares. The funds will go to general corporate purposes and international expansion. Discount retailer Dollar General gained 4.7 percent after earnings bested expectations by three cents per share at 77 cents. Same-store sales growth reached 5.1 percent in the quarter. Bond prices dropped. The yield on the 10-year Treasury rose to 2.90 percent from 2.85 percent Tuesday, while the 30-year increased to 3.80 percent from 3.78 percent. Prices and yields move inversely.