Stocks Extend Rally on China Data

U.S. stocks rose at the open on Tuesday, following further upbeat economic data from China. The Dow Jones industrial average lately rose 81.28 points or 0.54 percent, to 15,144.40, The S&P 500 gained 8.38 points or 0.50 percent, to 1,680.09 and the Nasdaq Composite added 16.50 points or 0.45 percent, to 3,722.68.

Chinese economic data released Tuesday showed a stronger-than-anticipated picture in August for the industrial and retail sectors. Industrial production rose 10.4% from a year earlier, accelerating from July’s 9.7% advance, the National Bureau of Statistics said.

Investment bank Goldman Sachs Group Inc. (GS), credit card company Visa Inc. (NYS:V), and footwear Nike Inc. (NKE) will join the blue chip Dow Jones Industrial Average (.DJI), the index managers said Tuesday, replacing Alcoa Inc. (AA), Bank of America Corp. (BAC) and Hewlett-Packard Co. (HPQ).

McDonald’s Corp reported a better-than-expected 1.9 percent increase in global sales at established restaurants in August, helped by stronger sales in Europe. Same-store sales in Europe rose 3.3 percent in August, helped by the introduction of blended-ice beverages and higher priced items in the UK and Russia.

A rise in interest rates is slamming homeowners’ demand for mortgages, prompting large and midsize banks to cut jobs and warn investors of declining profitability in the home-loan business. Wells Fargo & Co. on Monday told investors at a conference that it expects mortgage originations to drop nearly 30% in the third quarter to roughly $80 billion, down from $112 billion in the second quarter.

Apple Inc. is expected to dominate the headlines and the blogsphere on Tuesday as it hosts a media event at its headquarters in Cupertino, Calif., where it is expected to announce the release of a lower-priced iPhone.

U.S. crude-oil futures extended losses, dropping nearly 3%, Tuesday on news the Syrian government had accepted a Russian proposal to give up its chemical weapons to the international community to avert a U.S. military attack. Crude oil for October delivery CLV3 -2.39% fell $1.94, or 2.8%, to $107.58 a barrel.

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