James Dennin, Kapitall: Construction spending was released this morning, so we found 5 Rallying stocks in the industry. Construction spending rose, albeit modestly, by .01% this month. While the move may seem negligible, it is still significant because it climbed to its highest point since March, 2009. The gains are also noteworthy because they came at a time when Public Construction spending was decreasing. The Government Shutdown and the ensuing cuts were therefore offset by even bigger gains to private spending, which climbed to its highest levels since December 2008. Investing Ideas Construction is an important bellwether for the economy as a whole. Improved construction output benefits firms in the industry as well as many of the producers of raw materials who provide material support. Moreover , people investing in their homes signals increasing optimism in the housing market. We built a list of stocks in the heavy construction sector that are rallying above their simple moving average for the last 50 days. The simple moving average (SMA 50) is an average of the prices that the stock has traded at over a set period of time. A stock which is trading above that figure can be said to be rallying. All 5 of these stocks were rallying as of 9:30 EST, before the markets opened. That means they were performing well before the favorable construction report. Will they fare equally well afterwards? Use the list below to begin your analysis and let us know what you think in the comments. Click on the interactive chart below to view data over time. 1.Argan, Inc. ( AGX):Provides engineering, procurement, and construction services. Market cap at $393.26M, most recent closing price at $28.41. Rallying 5.69% above its SMA50. 2.Layne Christensen Co. ( LAYN):Provide drilling and construction services and related products to the water infrastructure and mineral exploration markets. Market cap at $328.67M, most recent closing price at $16.96. Rallying 1.5% above its SMA50.