Stronger-than-expected growth in manufacturing helps stocks

Stocks rose Monday, sending the Dow Jones industrial average to its highest level since December 2007, on stronger-than-forecast growth in manufacturing. The Dow Jones industrial average gained 52.45 points to 13,264.49. The Standard & Poor’s 500 index rose 10.57 points to 1419.04. The Nasdaq composite index added 28.13 points to 3119.70.

“We have solid gains that are likely to be sustained, maybe with some slight pullbacks over coming months,” says Eric Teal, chief investment officer at First Citizens Bancshares. “The manufacturing data continue to show signs of improvement. It supports our modest pro-cyclical position.”

Stocks gained as manufacturing in the U.S. expanded at a faster pace than forecast in March, a sign the industry is weathering slower global growth. The Institute for Supply Management’s factory index rose to 53.4 from 52.4 a month earlier. Fifty is the dividing line between growth and contraction. A separate report showed construction spending decreased 1.1% in February, compared with the 0.6% median growth forecast.

The S&P 500 rose 12% in the first quarter as economic data surpassed estimates and investors speculated that the eurozone would contain its

Highlights:

Freeport-mcmoran jumped $1.07 to $39.11, as the copper and gold company gained amid a commodity rally. Alpha Natural, a coal producer, rallied 26 cents to $15.47.

-Avon surged $3.34 to $22.70. Coty said it has submitted a non-binding proposal to acquire the door-to-door cosmetics seller for $23.25 a share in cash. The purchase price represents a premium of about 27% over the three-month average weighted price for Avon shares, Coty says.

-Gro-pon tumbled $3.11 to $15.28 after the largest provider of daily deals online reported a “material weakness” in its financial controls and said fourth-quarter revenue was lower than it had stated because of higher refunds to merchants. sovereign-debt crisis. The benchmark measure advanced 3.1% in March, its fourth monthly increase in a row for the gauge’s longest streak of monthly gains since 2009, as Federal Reserve Chairman Ben Bernanke said he will keep stimulating the economy and Europe agreed to increase rescue funds.

“We don’t see any big negatives that would cause people to run for the hills,” says Joseph Keating, chief investment officer at Centerstate Wealth Management. “Easy monetary policies are in place around the globe. Investor sentiment has picked up.”