Stocks Rally to Start New Trading Year

U.S. stocks on Tuesday ushered in the new trading year with gains of about 1.5%, after a gauge of U.S. manufacturing hit a six- month high, adding to cheer that began with solid data from overseas. The Dow Jones Industrial Average rose 179.82 points, or 1.47%, to 12,397.38. The S&P 500 rose 19.46 points, or 1.55%, to 1,277.06. The Nasdaq Composite rose 43.57 points, or 1.67%, to 2,648.72.

Manufacturing activity accelerated in December, highlighting the U.S. economy’s momentum heading into the new year, according to a key index released Tuesday. The Institute for Supply Management’s manufacturing index for December climbed to 53.9% from 52.7% in November, which is a six-month high.

AT&T said late Tuesday it will pay Tivo at least $215 million to settle a patent lawsuit. As part of the deal, AT&T will make an initial payment of $51 million and recurring payments totaling $164 million until June 2018. The two companies also reached a mutual patent licensing agreement and agreed to dismiss all pending lawsuits.

Crude futures on Tuesday ended at their best since mid-May after a gauge of U.S. manufacturing came in higher than expected and spurred hopes of more demand for oil. Crude futures for February delivery rose $4.13, or 4.2%, to end at $102.96 a barrel on the New York Mercantile Exchange.

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