Banks, Industrials Lead Stocks Higher

Banks, Industrials Lead Stocks Higher

NEW YORK (AP) -- U.S. stocks moved broadly higher on Tuesday, helped by improving economic data from Japan and Europe as well as hopes for the European Central Bank expanding its stimulus program. Banks and industrial companies led the gains, helped by the prospect of higher interest rates and growth in manufacturing.

KEEPING SCORE: The Dow Jones industrial average rose 56 points, or 0.3 percent, to 17,775 as of 10:15 a.m. Eastern. The Standard & Poor's 500 index rose seven points, or 0.3 percent, to 2,087 and the Nasdaq composite index rose 12 points, or 0.2 percent, to 5,120.

INTEREST RATES: Banks were among the largest advancers in early trading. While the ECB is looking to cut interest rates, the Federal Reserve remains on track to raise interest rates later this month. Higher interest rates are good for banks because they can charge more to loan money.

JPMorgan Chase rose 60 cents, or 1 percent, to $67.29. American Express rose 48 cents, or 0.7 percent, to $72.12 and Morgan Stanley rose 71 cents, or 2 percent, to $35.01.

JAPAN DATA: An index measuring factory report in Japan rose to 52.6 in November, the highest reading in 20 months and up from 52.4 in October. The index is based on a 100-point scale, with the 50-point mark separating expansion from contraction. Japanese shares jumped 1.3 percent on the news.

EUROPEAN JOBS: The unemployment rate in the 19 countries that use the euro edged down to 10.7 percent in October, a near four-year low. The drop shows the labor market is improving gradually, though the figures are not expected to keep the European Central Bank from offering more monetary stimulus on Thursday. ECB head Mario Draghi has signaled the bank could expand its bond-buying program or cut interest rates.

ENERGY: Benchmark U.S. crude rose 24 cents to $41.70 a barrel on the New York Mercantile Exchange. Brent crude oil, which is used to price oil internationally, rose 22 cents to $44.82 a barrel.

BONDS, CURRENCIES: U.S. government bond prices didn't move much. The yield on the 10-year Treasury note held steady at 2.21 percent. The U.S. dollar slipped to 123.02 yen from 123.25 yen on Monday on the Japanese economic data. The euro rose to $1.0635 from $1.0572 and the dollar fell to 122.83 yen from 123.12 yen.

(KA)