Economic data rallies Dow

STOCKS got a rousing rally at midday yesterday, as buying intensified in techs and blue chips after a spate of surprisingly strong economic data worked some holiday magic into the markets.

Around 11.30 am ET, the Dow Jones industrial average, up 217.55 to 8893.97, the Nasdaq composite, up 38.16 to 1482.59 and the Standard & Poor's 500 index, up 22.03 to 935.34, all rose over 2%.

The bulls broke out of the gates after the day’s raft of economic updates on employment, personal spending, manufacturing activity and durable goods orders all showed surprise improvements and gave investors more tangible evidence of a recovery.

“The numbers across the board were pretty surprising”, said Hugh Johnson, market strategist with First Albany.

“I would say that improvements in the leading indicators of the economy, like the employment and manufacturing numbers, is very encouraging and indicate that the economy is expanding and not contracting.

“It also suggests continued expansion into the first quarter,” he added.