US GOOD NEWS 2.12.2009

Stocks rallied Tuesday as worries about Dubai's debt problems eased, gold hit a record above US$1,200 and GE andComcast moved closer to a deal on NBC Universal. Investors also kept an eye on auto sales, which were down from Octoberbut mostly higher from a year ago, and the day's better-than-expected economic readings on construction spending andpending home sales. The Dow Jones industrial average added 1.2% (+126.74 pts, close 10,471.58), closing at the highestpoint since Oct. 2, 2008. The S&P 500 index gained 1.2% (+13.23 pts, close 1,108.86), and closed just short of a 14-monthhigh. The Nasdaq composite rose 1.5% (+31.21 pts, close 2,175.81), and remained short of a 14-month high hit a week ago.U.S. light crude oil for January delivery rose US$1.47 to US$78.75 a barrel on the New York Mercantile Exchange.(CNNMoney)

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U.S. manufacturing expanded in November for a fourth consecutive month, propelled by gains in orders and exports thatsignal growth will be sustained. The Institute for Supply Management’s manufacturing index fell to 53.6, lower than forecast,from October’s three-year high of 55.7, according to the Tempe, Arizona-based group. Readings above 50 signal expansion.Stocks extended gains, sparked by a report showing factory output in China rose at the fastest pace in five years, liftingearnings prospects at U.S. exporters including Caterpillar Inc. Growing demand from overseas and lean inventories may keepAmerican assembly lines running into 2010, when government stimulus efforts begin to wane. (Bloomberg)

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U.S. construction spending was unchanged in October after declining five straight months as rising office and retailvacancies deterred the building of commercial projects. Spending in September, previously reported as an increase, fell 1.6%,according to Commerce Department data released in Washington. Construction spending declined on office buildings andcommercial projects, while homebuilding increased. Construction will be hard-pressed to contribute to the economic recoverywith commercial property vacancy rates rising and builders limiting starts of new homes to help deplete inventories. Privateresidential construction spending rose 4.4% after a 2% decrease in September. Compared with a year earlier, it was down24%. Non-residential construction, including public projects, declined 1.5%. It was down 11% from 12 months before. Publicconstruction decreased 0.4% in October, led by declines in housing, transportation and utility projects. (Bloomberg)