Business Highlights

3 strong economic reports lift recovery hopes

WASHINGTON (AP) — Hopes for the fledgling economic recovery got a boost Monday from better-than-expected news on manufacturing, construction and contracts to buy homes.

The Institute for Supply Management's gauge of manufacturing activity grew in October at the fastest pace in more than three years. It was driven by businesses' replenishing of stockpiles, higher demand for American exports and support from the government's $787 billion stimulus program.

Construction spending rose a bigger-than-expected a 0.8 percent in September, while the National Association of Realtors said the volume of signed contracts to buy previously occupied homes rose 6.1 percent in September to a reading of 110.1. That's the highest level since December 2006. And it's more than 21 percent above a year ago.

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Ford surprises with $1B profit; sees profit in '11

DEARBORN, Mich. (AP) — Ford, the only Detroit automaker to dodge direct government aid and bankruptcy court, surprised investors with net income of nearly $1 billion in the third quarter and forecast a "solidly profitable" 2011.