Manufacturing Jumps in October

TEMPE, Ariz. (TheStreet) -- The manufacturing sector continued growing in October, reaching its highest reading since April 2006, according to data from an influential manufacturing trade group.

On Monday morning, the Institute for Supply Management released its index measuring action in manufacturing, which jumped to 55.7 in October from a 52.6 figure in September and marked the third straight month that the index has shown expansion (represented by a number higher than 50). The index, which is created from a survey of manufacturing supply managers from the trade group, was expected to show a reading of 53, according to analysts polled by Thomson Reuters.

With other surprise data showing a jump in both home sales and construction spending percolating about, the broader markets were jumping higher. Among several major manufacturers, shares of Caterpillar(CAT Quote), General Electric(GE Quote), Boeing(BA Quote) and Hewlett-Packard(HPQ Quote) were all rising in the morning, gaining 1.9%, 1.9%, 0.4% and 1.3%, respectively.

-- Written by Sung Moss in New York

Follow TheStreet.com on Twitter and become a fan on Facebook.