US stocks snap to on day 1 of quarter

U.S. stock markets swung higher Monday on stronger-than-expected manufacturing data and lighter-than-expected bad news from Europe. The Institute of Supply Management said the Purchasing Managers Index for U.S. firms came to 51.5 percent for September, above the break-even point of 50 percent. The consensus forecast called for further contraction in manufacturing with a prediction of 49.7 percent, near the 49.6 percent index reading in August. In Spain during the weekend, a stress test of the nation's 14 largest banks found only seven required government assistance. This reduced an expected $130 billion loan for Spain to about $60 billion. On Wall Street in afternoon trading, the Dow Jones industrial average added 119.97 points or 0.89 percent to 13,557.10. The Nasdaq composite index added 5.73 points or 0.18 percent to 3,121.96. The Standard & Poor's 500 index added 8.27 points or 0.57 percent to 1,448.94. The benchmark 10-year treasury note rose 3/32 to yield 1.627 percent. The euro fell to $1.288 from Friday's $1.2859. Against the yen, the dollar rose to 78.04 yen from 77.93 yen. In Tokyo, the Nikkei 225 index shed 0.83 percent, 73.65, to 8,796.51. In London, the FTSE 100 index added 1.37 percent, 78.38, to 5,820.45.