US stocks rebound after 3-day losses

March 18, 2011 | 09:02

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US stocks rebounded Thursday one day after the Dow took its steepest drop in seven months, with positive economic data giving a boost to traders.

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The Dow Jones Industrial Index added 161.29 points (1.39 per cent) at 11,774.59 in closing trade, recouping in part the more than 480 points lost in the past three days.

The broad-based S&P 500 rose 16.82 points (1.34 per cent) to 1,273.70, while the tech-heavy Nasdaq Composite gained 19.23 points (0.73) per cent at 2.626.05.

Analysts shrugged off government data showing a 0.1 per cent fall in industrial production in February, and focused on numbers showing real improvement in manufacturing.

"Industrial production unexpectedly dropped in February, but the decline was due to the impact of milder weather on utilities. The report showed manufacturing activity continued to climb," said Scott Marcouiller of Wells Fargo Advisors.

"A report on mid-Atlantic factory activity was surprisingly strong, and leading economic indicators in the US increased for the eighth straight month," he said.

AFP

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