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Bebeto Matthews / AP
Peter Tuchman, a trader with Quattro M Securities, works from a handheld computer on the first day of trading for 2012 on the New York Stock Exchange.
By msnbc.com news services
Wall Street stocks kicked off 2012 with a sharp rally on Tuesday after data showed U.S. manufacturing activity and construction spending picked up, signaling the economic recovery was gaining steam.
The report added to early market optimism spurred by data from China and Germany that suggested the global economy was on the right track to improvement.
The pace of growth in the U.S. manufacturing sector accelerated in December, its best month since June, while a rise in new orders suggested decent momentum in 2012. Separately, construction spending in November surged to a near 1-1/2 year high.
"The big news is that there's no negative news coming out of Europe, so investors can focus on the improving economy and our improving economic data," said Jake Dollarhide, chief executive at Longbow Asset Management in Tulsa, Oklahoma.
"People are very optimistic that 2012 will prove to be a big year for the recovery and the stock market."
The Dow Jones industrial average was lately up some 200 points. Financial stocks were among the market leaders as risk appetite came back.
In company news, 3M Co added heft to its office supplies business that includes Post-it Notes and Scotch tape brands, acquiring Avery Dennison Corp's office and consumer products unit.
Avery Dennison shares rose 3.8 percent $29.76, while 3M added 2.7 percent to $83.96.
China, the world's largest consumer of metals, avoided contraction in December, albeit slightly. Also boosting sentiment, German unemployment fell more than forecast.
The Associated Press and Reuters contributed to this report.
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What a scam. Stocks up on wave of optimism, stocks plunge because the CEO of Merrill Lynch let a wet fart slip in a board meeting... I'm burying my money in coffee cans in the back yard. Even if squirrels eat 25% I'd still be ahead.
starting the new year with an upbeat note, i'm going to go on etrade and put all my money into the stock market now yayyyyyy!!
The volumes, like during the Christmas season, are abysmal. This shows that it's just a very few BIG investors moving money around and not a big market move. So far today, volumes are at 50% of the 10 day average.
Sucker in some small investors and cash out seems to be the modis operendi.
Yup. Almost like a penny stock pump and dump scam. Just on a much larger scale.
Stocks taking off, building and manufacturing positive news, recovery seems to be finally kicking in...
So, where are all the usual posts from the conservatives saying that this is all Obama's fault?
The GOP primaries, however, may be somewhat responsible for the economy looking up. As they are getting starting now, the eventual candidate does appear to be coming from this current group, so it's looking like Obama has a very good chance of getting re-elected running against any of the current contenders. Wall Street and businesses prefer continuity and stability over change, so a very weak slate of potential GOP candidates over an extended primary and election cycle should be great for the stock market and this recovery to start making a real dent.
you do realize that mutual fund managers have been investing overseas for many years,the optimism is that the growth will continue in countries like china,india,brazil and other semi developed nations.the american economy is stagnant as in reaching it`s potential about twenty years ago.
Yes, big surprise- stocks are up on the same false optimism and pretenses that have artificially kept the markets held up by toothpicks all this time. Soon the dam must come crashing down- the year's still young...
no surprise at all,there are countries and businesses to make money at.
OMG!
Our economy is improving!?
YIPES! What will the crazy RWNJ's have to complain about?
When will the stock market crash for goodness sakes?
sorry alan,it has some very bad days but seeksout winners.
Wall Street, America's Casino only benefiting a few who can afford to gamble, the rest of us get the scraps. All you get in the media is Wall Street, Romney and the coming war with Iran. It's so completely predictable it's not even worth the time and effort to read.
They got it all wrong here - the numbers still are bearish that they referenced herein.
The optimism is due to the expectation we'll have the election of new management in D.C. this November.
Dream on!
rebelwcause - nope - the optimism is that the GOP will lose seats in both the House and the Senate so we can finally begin to get things done!
Since the recession ended in 2008, the market saw huge gains in 2009 and 2010. 2011 started off big thru May then ended last week so so. Can't make 20% every year.
2012 starts on a nice note.
I've made twice as much in 2009-2011 since the recession ended as I lost during the recession in 2008.
Anybody whose hasn't made a ton of money in their 401K and IRAs in the last three years is an idiot.
Prices going up, wages going down or staying flat, people buying on credit and then returning Christmas gifts to stores in record numbers. Our so called "government" feeds us numbers that are pencil whipped to suit whatever political agenda is in power at the time. Middle class (what there is left of it) spending is 70% of our economy, REAL unemployment rate at 18% or better, Sears and other anchor businesses going, or nearly going, out of business, gas prices on a steady rise which will end the so called "recovery", and the morons are BUYING STOCKS. Anyone stupid enough to invest their money in the market right now deserves to lose it. All we have done is paper over the problems that got us here just the same as the EU has done and a strong wind is coming that will blow it all down. The only people making money in the market right now are those that are betting on failure. You can only make that bet and win so many times before you hit the bottom of the barrel. 2012 will be the end of it I fear. The love of gold is the root of all evil and we have a surplus of that right now. Unlike the housing crises, when this bubble bursts, it will take the whole world's economy with it. The "terrorists" aka the Muslims, have kept us in unwinable wars for ten years now and have pretty much bankrupted us and we're now on the verge of war with Iran. ( Google "The Art of War" and read it to see how smart their strategy really is) That WILL be the straw that breaks the camel's back. Sometimes I think we are doing everything we can do to make the events spoken of in Revelations (and other prophetic writings) come true. If this year is truly the end of civilization as we know it, it won't be God's fault but ours, and ours alone.
Willie's Wisdom: If we all just continue to do what we did, we can only expect that we'll get what we got.
The "terrorists" are people who can't see that fanatics are the real problem - be they Muslim, far right wingers, etc. Muslims in general are just like everyone else. Only ignorant buffoons believe otherwise.
These guys may live with their heads in the sand but unfortunately our retirement accounts live on life support, and not much of that tanks to the idiot right-wing politicians who turned our lives over to the big banks.
Is this Obamanomics trickle-down?
I think that over the next six months you might get a truly American Recovery!! meaning manufacturing is going to comeback big time, the Congress is going to get off the butt and do something with the President about the debt, and finally you will a corporate tax rate cut in down to 30% creating a better economic recovery. My opinion as i always say.
You may be right, but the recovery will be very slow. Engineering companies have been itching to hire for the last three years, but no companies were giving them orders to expand. It is just now that these engineering firms are hiring as the orders are coming in. But it takes a year at least for these drawings and designs to hit the construction sites.
Are you better off now then you were 3 years ago?
YES!! Thanks Obama!!!
This is "B" as in B, "S" as in S... total market manipulation to suck in the small investor. The Market's getting ready for a crash - as soon as those in control get enough of the little guys money that is.
And no... I'm not better off than three years ago - my home value continues its plunge and I still have to dip in to what little saving I have left to cover my basic expenses.
Don't be fooled... manufacturing is "not" coming back and never will until we're a third world nation and are willing to live in shacks.
A lot of great comments here. I've just started posting here and usually I end up "battling" if you will, topic shifters and what not. There is a pretty knowledgeable crowd at MSNBC. Thanks for no @!$%# posts so far, I am sure there will be many more dick posts after this one but wtf. This is America
x.co/dicksnass
Attention: The Right is wrong. Sir, UR a sick puppy and you need help badly. Don't wait or it might be too late. The economy is slowly, painfully improving. It has to. It has no way to go except up. A 2% growth of GDP is still pathetic. UR hero, Barry "I lead from behind" Obama is going down. He is the worst president we have ever had and he will be one term and history.
Say good bye to Barry. Bye Bye Barry.
In my opinion, the worst of the recession is over. I network with other business owners frequently. Most of the business owners I know, are expanding, hiring, or growing. My company has seen a huge increase in residential in home projects. Kitchen Cabinet Refinishing, Front Door Refinishing, Bathtub Refinishing. I think 2012 is going to be the best year we've had in a long time.
Derek P
Owner
Atlanta Refinishing
www.atlrefinish.com
Wow everytime something good happens "its market manipulation by our govt" when it goes bad it" Obama is screwing up the economy" . Since 2008 it has improved that is a fact. GM is on top again and that is a fact. My 401k is booming now, That is a fact. Private sector job data is improving each month and yes that is a fact. The republicans want to do everything to hinder the economy and President Obama and yes that is also a fact that has been proven. He is not perfect but he is doing a good Job getting america back on track. The condition of this country has not given me any reason to vote for anyone other then Obama. Both my kids found Jobs within a week of looking and they were not seasonal and they picked the Job they wanted from several offers and yes that is a fact. The only problem I see is Congress inability to come to any agreement that is not Defense related, and by the way that is also a fact. Iraq is over and Afghanistan is next so I am better off then I was 4 years ago and so is this country so Obama/Biden2012!!!!!