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U.S. stocks rise ahead of manufacturing report

U.S. stocks rise ahead of manufacturing report

Stocks rose Tuesday as investors grew cautiously optimistic ahead of data on the U.S. manufacturing sector that will provide clues about how much the economy is slowing.
After a strong April, during which the Dow Jones industrials crossed 13,000 for the first time, investors will be looking to economic data and more profit reports to decide whether to keep buying up stocks in May.
The Institute for Supply Management was scheduled to release its April index of U.S. manufacturing early in the session, and economists predicted a reading of 51.0. A reading below 50, which would indicate that manufacturing activity is contracting, could revive fears of an upcoming recession.
Also Tuesday, investors will examine the National Association of Realtors' report on pending sales of existing homes in March, and automakers' April sales figures.
In the first hour of trading, the Dow Jones industrial average rose 24.63, or 0.19 percent, to 13,087.54.
Broader stock indicators were also higher. The Standard & Poor's 500 index was up 1.73, or 0.12 percent, at 1,484.10, and the Nasdaq composite index was up 3.06, or 0.12 percent, to 2,528.15.
Bonds were virtually flat, with the yield on the benchmark 10-year Treasury note at 4.62 percent, unchanged from late Monday. The dollar slipped against other major currencies, while gold prices also fell.
Procter & Gamble Co., one of the 30 components of the Dow industrials and maker of Crest toothpaste and Pampers diapers, reported a 14 percent increase in its fiscal third-quarter profit in part as it extracted savings from its Gillette business. But with a string of better-than-expected quarterly reports in recent weeks, Wall Street appeared unimpressed with profit that failed to top expectations.
Procter & Gamble fell $1.72, or 2.7 percent, to $62.68 in early trading.
The Russell 2000 index of smaller companies was down 0.62, or 0.08 percent, to 813.95.