Manufacturing Data Preserves Early Advance

Early gains that greeted traders in morning action were preserved following an unexpected increase in the ISM Manufacturing Index-the sixth-straight monthly expansion-and stocks are solidly higher and near the best levels of the day. A better-than expected earnings report from Dow member Exxon Mobil is also helping the bulls rebound from last week's decline. Treasuries remain lower, extending some losses after the manufacturing report that came from a slightly larger-than-expected increase in personal income, but spending came in short and construction spending fell much more than forecasted. In other equity news, Humana matched the Street's profit projections, while its revenues came in a bit light, but it raised its full-year profit outlook, and Boston Scientific agreed to settle patent litigation and will pay Dow member Johnson & Johnson $1.7 billion. Overseas, stocks in Asia were mixed amid a flood of economic data, headlined by manufacturing reports in China, which showed continued expansion, but the reports are stoking concerns that the Chinese government may be forced to ramp up its efforts to rein in excess liquidity. Meanwhile, Europe is higher as traders are digesting a plethora of upbeat manufacturing reports in the Eurozone.