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Stocks rally as China's manufacturing sector recovers



U.S. stocks rose, tracking a global rally as better-than-expected manufacturing data out of China helped assure worries of a broad economic slowdown.

The S & P 500 (^ GSPC) rose 1.07%, or 30.36 points, as of 3:37 pm ET, led by advances in the financial and industrial sectors. The Dow (^ DJI) rose 1.14%, or 295.69 points, outperformed JPMorgan Chase (JPM) and Caterpillar (CAT). The Nasdaq (^ IXIC) rose 1.18%, or 90.91 points.

Domestic equities are looking to start April higher after the S & P 500 closed on its best first quarter since 1998 on Friday, rising more than 13% for the year-to -date.

The Dow rose 11.2% in the first three months of 2019, or 2.601 points. The largest single contributor to the advances in the index was Boeing (BA) – which contributed 421 points, or 16% of the Dow's gain, according to a Datatrek analysis. Apple (AAPL) was the second largest contributor, helping to add 233 points, or 9% of the total gain.

Historical returns show that the S & P 500 was able to get its performance at the start of the year , The S & P 500's 7.9% rally this January was one full standard deviation above January's average return of 1.2% since 1958, Datatrek's co-founder Jessica Rabe pointed out in a report. In the eight years ahead of 2019, whenever the S & P 500 returned above average in January, the index rose to an average of 2.2% in April and was positive in 60% of those years.

Equity futures overnight rose China's manufacturing sector rose at the fastest rate of increase in eight months. The country's private Caixin / Markit Manufacturing Purchasing Managers' Index released Monday at 50.8 in March, rising out of contraception territory with a reading above 50. Consensus analysts expected the survey to be at 49.9 for a second consecutive month in March.

The results of the Caixin / Markit Manufacturing PMI survey reaffirmed data released from China's National Bureau of Statistics.

<p class = "canvas-atom canvas -text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" This week, Chinese Vice Prime Minister Liu He wants to lead a delegation to Washington, DC to continue talks US Treasury Secretary Steven Mnuchin wrote in a Twitter post that talks have been so far "constructive." "data- reacti This week, Chinese Vice Premier Liu He wants to lead a delegation in Washington, D.C. to continue talks with U.S. officials and work toward a deal on trade. After speaking with Chinese negotiators in Beijing last week, U.S. Treasury Secretary Steven Mnuchin wrote in a Twitter post that talks have been so far "constructive."

Over the weekend, China's State Council said that the country intends to continue on additional tariffs on U.S. Vehicles and automobile parts after April 1. China has decided on pause on additional auto tariffs in December for three months as part of a trade agreement with the U.S., toward a deal move forward.

Elsewhere, the British pound slipped and held below $ 1.31 against the dollar (GBPUSD = X). Businesses were preparing for a chaotic departure from the EU. IHS Markit's Purchasing Managers Index rose to 55.1 in March, from 52.1 the month prior, as inventories soared while optimism remained tepid.

Prime Minister Theresa May speaks to lawmakers at the House of Commons, London, Friday March 29, 2019. U.K. lawmakers on Friday rejected the government's Brexit divorce deal with the European Union for a third time. (Mark Duffy / House of Commons via AP)

"IHS Markit." – Boosting production to build-up inventories in advance of Brexit wrote in a statement.

Members of the UK Monday evening after MPs took control of the U.K.'s exit proceedings from Prime Minister Theresa May last week. Given May's departure plan was voted down for a third time last week, the default default option is for the U.K. Story

Economy

<p class = "canvas-atom canvas- text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Retail sales unexpectedly declined in February, according to an anterior reading from the US Census Bureau: 0.2%, versus 0.2% increase expected., 0.2% previously. " data-reactid = "43"> Retail sales unexpectedly declined in February, according to an advance reading from the U.S. Census Bureau. 0.2%, versus 0.2% increase expected. However, the reading for a single month of growth in the United Arab Emirates

Excluding automotive sales, retail sales fell 0.4% month-over-month in February, below a 0.3% expected increase and upwardly revised. 1.7% rise in January.

"We expect more strength in March, helped by late-arriving tax refunds and more normal weather than in February, but Jim O'Sullivan, chief US economist for High Frequency Economics, wrote in a note Monday.

The control group for retail sales – which falls in the calculation of gross domestic product – fell 0.2% month-over-month in February, after rising an upwardly revised 1.7% in January. This category excludes the more volatile categories of auto, gas, building material and food service sales.

<p class = "canvas atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – M "type =" text "content =" IHS Markit's reading for the US manufacturing PMI declined to its lowest decelerated to more than a year in March as output and new orders Following March's final reading, the first-quarter average for US PMI PMI at 52.4 in March, down from 53 in February, and subsequent consensus estimates for a reading of 52.5 , IHS Markit reported. " data-reactid = "47"> IHS Markit's reading for the United States manufacturing PMI declined to its lowest decelerated to more than one year in March as output and new orders. The reading fell to 52.4 in March, down from 53 in February, and below consensus estimates for a reading of 52.5. Following March's final reading, the first-quarter average for U.S. IHS Markit reported

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – -m "type =" text "content =" Separately, the Institute for Supply Management's monthly report PMI rose to 55.3 in March, from 54.2 in February and above consensus estimates of 54.5. The advance was led by an improvement in ISM's Employment Index, which rose 5.2 points to 57.5 in March.The index's New Orders rose to 57.4, from 55.5 in February. " data-reactid = "48"> Separately, the Institute for Supply Management's monthly report PMI rose to 55.3 in March, from 54.2 in February and above consensus estimates of 54.5. The advance was led by an improvement in ISM's Employment Index, which rose 5.2 points to 57.5 in March. The index's New Orders index rose to 57.4, from 55.5 in February.

The "modest rebound" in March offers some reassurances that the U.S. factory sector is not following its European counterpart off a cliff, "Andrew Hunter, senior U.S. Economist for Capital Economics, wrote in a note Monday. However, "the details of the survey are still consistent with manufacturing output growth slowing."

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Emily McCormick is a reporter for Yahoo Finance. Follow us on Twitter: @emily_mcck "data-reactid =" 64 "> Emily McCormick is a reporter for Yahoo Finance. Follow us on Twitter: @emily_mcck

<p class = "canvas-atom canvas-text Mb (0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Follow Yahoo Finance on Twitter Facebook Instagram Flipboard [19659021] and reddit . "data-reactid =" 65 "> Follow Yahoo Finance on Twitter Facebook [19659021] Instagram Flipboard LinkedIn and reddit .

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