US stocks started the new year with strong gains today, as much better-than-expected economic data and a positive historical backdrop provided an early catalyst. The Institute of Supply Management's (ISM) reading on manufacturing activity for the month of December rose to 66.2pc from 62.8pc in November. Economists had been expecting a dip to 61.5pc. In early deals, the Dow Jones Industrials Average powered up 71 points, or 0.7pc, to 10,525, the highest level seen since mid-March 2002, while the Nasdaq composite gained 15.81 points to 2,019.18. Of the Dow's 30 components, 29 contributed to gains. AT&T rose 3.3pc to lead the winners after USA Today reported that the telecommunications giant was raising long-distance rates.
Citigroup rallied 1.2pc and reached a 52-week high in intraday trading after the financial services giant became one of the first two banks granted approval to issue credit cards in China. Other Dow stocks reaching new highs included Coca-Cola, Exxon Mobil, DuPont, Honeywell, Procter & Gamble and Walt Disney and International Paper. 3M was the only loser, but only barely with a 0.1pc dip. ///www.fxcentre.com