Sector Snap: Manufacturing Rises After Output Data

NEW YORK (AP) — Stocks of U.S. manufacturing companies rose Friday after the Federal Reserve reported the nation's industrial production fell in April by the smallest amount in six months.

Output by U.S. factories, mines and utilities fell by a mere 0.5 percent last month, after revised declines of 1.7 percent in March and 1 percent in February, the Federal Reserve said Friday. Analysts expected an 0.6 percent decline in April.

While hardly robust, the numbers heartened some analysts.

"We believe the April industrial production report should be viewed with some optimism that the severe industrial recession is starting to bottom out," Dan Meckstroth, economist with the Manufacturers Alliance/MAPI, said.

"Taken in the context of some improvement in housing and motor vehicles activity, the relatively small decline in industrial production is a sign that is consistent with our forecast that the recession will end this fall."

Among manufacturing sectors posting broad-based gains were equipment makers, steel and aluminum makers and packaging producers.

Alcoa Inc. rose 53 cents, or 6.1 percent, to $9.27, Deere & Co. gained 82 cents, or 2 percent, to $42.60, Sonoco Products Co. climbed 59 cents, or 2.6 percent, to $23.19, Masco Corp. added 30 cents, or 3.2 percent, to $9.76 and Rockwell Collins Inc. increased 85 cents, or 2.3 percent, to $38.43.