Midday Report: Factory Activity Shows Surprise Increase; U.S. Stocks Rebound

Stocks held gains as services activity in September picked up and factory orders for August increased. Markets rebounded from a gold-triggered selloff endured a day earlier. Activity in the services sector increased at a far-faster pace than expected in September, increasing for its 80th straight month and hitting an 11-month high. Both new orders and business activity drove gains. Factory activity appears to be recovering from a slowdown earlier in the year after factory orders in August showed an increase for a second straight month. Analysts had forecast a decline. Crude inventories in the U.S. unexpectedly dropped in the past week, a relief to commodity traders worried over a domestic supply glut. The number of crude in stockpiles decreased by three million barrels, its fifth straight week in decline.