NEW YORK ( TheStreet) -- Stocks posted strong gains of roughly 1% during 2011's first trading session as promising manufacturing and construction data bolstered confidence in the U.S. economy's recovery prospects.
The bullish action in equities was a strong sign the January Effect is poised to be a factor this year, despite double-digit percentage gains for all three major U.S. equity indices in 2010.
The Dow Jones Industrial Average rose 93 points, or 0.8%, to close at 11,671. The S&P 500 added 14 points, or 1.1%, to finish at 1,272, and the Nasdaq Composite closed higher by 39 points, or 1.5%, at 2,692.
Financial stocks led Monday's broad rally with Bank of America (BAC) and JPMorgan Chase (JPM) topping the Dow alongside Alcoa (AA). Exxon Mobil (XOM) was also a standout, finishing the session up by 2%. Intel (INTC), Coca-Cola (KO), McDonald's (MCD) and General Electric (GE) were the only Dow components to close in negative territory. Trading volume strengthened from levels seen in 2010's final sessions with 1.1 billion stocks trading on the New York Stock Exchange and 1.9 billion shares changing hands on the Nasdaq. Breadth was clearly weighted to the positive with 72% of stocks posting gains and 25% losing ground. The strong start to the new year was fueled by two encouraging economic reports. The Institute for Supply Management said Monday morning
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