US STOCKS-Wall St rises on data; industrial shares up

* Construction spending unexpectedly rises in Sept

* Investors look ahead to Fed meeting, elections

* Indexes up: S&P 0.5 pct, Dow 0.5 pct, Nasdaq 0.1 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midday, changes byline)

By Caroline Valetkevitch

NEW YORK, Nov 1 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) edged higher on
Monday as U.S. and Chinese data underscored the view that the
recovery is on track, fueling gains in energy and industrial
shares.

Weakness in the euro against the dollar helped to limit the
advance, however, with the dollar having developed an inverse
relationship with stocks lately.

The market’s positive start to November followed gains of
12.5 percent by the benchmark S&P 500 in September and
October.

The S&P energy index (.GSPE: ) rose 0.9 percent as reports
showed U.S. factory activity in October expanded and
construction spending rose unexpectedly in September. Other
data showed manufacturing in China expanded at the fastest pace
in six months in October. For details, see [ID:nEAP101100]
[ID:nCLA1ME66Q]

“The data today reinforces that we have a sustainable
expansion, albeit it’s below average,” said Henry Smith, chief
investment officer at Haverford Trust Co. in Philadelphia.

“It’s good to see the market reacting to the positive data,
although our expectation is that … this might be short-lived
because it has the feel that we’re buying into the two big
pieces of news this week… We wouldn’t be surprised to see a
little bit of selloff on Wednesday.”

U.S. voters go to the polls on Tuesday to decide
congressional and other races, while the Federal Reserve begins
a two-day policy meeting.

The market has risen in recent months mainly on
expectations the Fed will add monetary stimulus this week and
also that Republican Party will make gains in Congress.

The anticipated change is due to concern about high
unemployment and consumers’ views on how Democratic President
Barack Obama is handling the economy. [ID:nUSVOTE]

The Fed is expected to announce on Wednesday it will
relaunch heavy bond buying. Most analysts expect the size and
the scope of asset purchases to be about $100 billion a month,
starting with a plan to buy $500 billion in bonds between now
and early 2011.

The Dow Jones industrial average (.DJI: ) was up 49.72
points, or 0.45 percent, at 11,168.21. The Standard & Poor’s
500 Index (.SPX: ) was up 5.49 points, or 0.46 percent, at
1,188.75. The Nasdaq Composite Index (.IXIC: ) was up 2.90
points, or 0.12 percent, at 2,510.31.

On the Dow, shares of Caterpillar (CAT.N: ) rose 1.4 percent
to $79.66, while shares of Exxon Mobil (XOM.N: ) rose 0.8 percent
to $67. Oil futures (CLc1: ) rose $1.83 to $83.26.

Among decliners Amazon.com (AMZN.O: ) was down 1.6 percent at
$162.62. The stock fell 2.3 percent last week, but was up 32
percent from the beginning of September through the end of
October.

The euro fell (Read more about the trembling euro. ) as low as $1.3864 (EUR=: ) as the dollar
strengthened on the U.S. manufacturing data, helping to keep
some of the market gains in check.

“Strength in the dollar definitely has a dampening effect
on the move higher,” said Peter Kenny, managing director at
Knight Equity Markets in Jersey City, New Jersey.

In the financial sector, Wilmington Trust Corp (WL.N: ) fell
42.5 percent to $4.09 after the company said it will merge with
M&T Bank Corp (MTB.N: ), a deal worth $351 million.
[ID:nSGE6A00EV] M&T shares were up 3.9 percent at $77.63.
(Reporting by Caroline Valetkevitch, with additional reporting
by Edward Krudy; Editing by Kenneth Barry)

US STOCKS-Wall St rises on data; industrial shares up