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Market Update

Wall Street Higher on Manufacturing Rebound, Retailers Add Seasonal Staff

Author: Nichole Harper
Last Update: 12:38 PM ET October 01 2012

12:10 AM New York – Stocks on Wall Street advanced after the latest manufacturing survey indicated a rebound and new orders index also gained in September. Macy’s Inc was the latest retailer to plan increasing seasonal staff this holiday season. Ceradyne Inc agreed to be acquired by 3M Company.

Stocks shot up in early trading in New York after manufacturing expanded for the first time in four months.

The S&P 500 index increased 0.9% to 1,454 and the Nasdaq Composite Index added 12.88 or 0.4% to 3,129.01.

The Institute of Supply Management, a trade group of purchasing managers, said factory activities increased to 51.5 in September from 49.6 in August. The index above 50 indicates an expansion and has been below 50 from June through August.

The measure of new orders increased to 52.3 from the low of 47.1 in August since April 2009 and export demand also increased to 48.5 from 47.

In addition, the employment index increased to a 3-month high of 54.7 from a near 3-year low of 51.6 in August as domestic demand drove the need for more staff. However, exports continued to struggle in the wake of weakness in the euro zone.

However today’s private survey on manufacturing is offers a different read from the regional surveys report in the New York, Mid-West and in Philadelphia regions. Manufacturing in New York declined at the fastest pace since April 2009 in September and in Philadelphia region fell for the fifth month in a row.

Retailers are planning add more staff ahead of holiday season as expectations for Christmas sales increase.

Macy’s Inc (M) said it plans to hire 2.5% more staff compared to a year ago and hire 80,000 temporary staff in call centers, distribution centers and online fulfillment centers.

Last week, Toys R Us Inc said it plans to add 45,000 seasonal staff, an increase of 13% from a year ago and Kohl’s Corp said it will be hiring 52,7000, 10% more than a year ago staff.

Last month, Wal-Mart Stores Inc said it plans to hire 50,000 people this holiday season and offer more hours to existing employees.

In European trading, markets surged after Spain was deemed to need less than previously estimated bailout capital according to a final report submitted by an independent auditing firm.

The FTSE 100 index advanced 1.4%, DAX index gained 1.6% and CAC 40 index soared 2.5%.

In Asia, a private survey in China indicated a contraction in manufacturing for the 11th month in a row and orders for exports declined at the fastest pace in 42 months and purchasing activity in manufacturing declined for the fifth month in a row.

Cerdyne Agrees to a Deal with 3M

Ceradyne Inc (CRDN) agreed to be acquired by 3M Company in a deal that valued the company at $847 million. The maker of advanced ceramic products used in defense equipment shot up 43% to $34.92.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc