Stocks got off to a robust start in February, with the bellwether indices closing above key psychological levels after January manufacturing data showed unexpected gains and strong earnings reports rolled in.
At the close, attention turned back to Egypt as President Mubarak made a national address. President Mubarak said that he will not seek re-election in September. Investors remain uncertain of whether that would be enough to calm protesters.
The Egyptian market remains closed but the
Market Vectors Egypt ETF(EGPT_) was up 5.5% to $18.46.
Manufacturing activity in the U.S. was much stronger than anticipated in January as the Institute for Supply Management's manufacturing index rose to 60.8, from 58.5 in December. According to
Briefing.com, economists had projected January reading of 58.4, from an initially reported level of 57 in December.
"The great news is that the manufacturing sector of our economy has taken off with a bang in 2011. The mixed blessing part of that is that it hasn't led to substantial hiring or rehiring," said Jim Russell, managing director of The Collingwood Group. He added that factories have been retooled to be more automated so that they can increase production without substantially increasing the labor force.
Russell also noted a surge in the price index component of the ISM, indicating that there's "inflation in the pipeline."
"It's a great manufacturing number but we need to view it with some caution. It appears that the measures that have been put in place are working, but the recovery is going to be a steady climb. We also have to be very cautious about how inflation takes a toll and about how we're going to reemploy America," he said
Dow Jones Industrial Average
(DJI: ^DJI )
| Index Value: | 12,040.16 |
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| Trade Time: | 4:01PM EST |
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| Change: |  148.23 (1.25%) |
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| Prev Close: | 11,891.93 |
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| Open: | 11,892.50 |
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| Day's Range: | 11,892.50 -12,050.75 |
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| 52wk Range: | 9,596.04 -12,082.20 |
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