Dow surges on strong industrial, tech sectors

NEW YORK — Industrial and technology stocks pulled the market sharply higher Tuesday after Boeing Co. said it was boosting production and an industry group forecast that demand for computers would increase.

The Dow Jones industrial average rose 214 points to its highest close since May 19 and had their third advance in four days. Major stock indexes rose more than two percent.

The advance was broad, but came on light trading volume. That’s a sign that many traders are staying out of the market while they wait to see if stocks will keep moving higher after weeks of erratic trading.

Industrials made some of the biggest moves following upbeat news from Boeing Co. and Illinois Tool Works Inc. Boeing rose 4.1 percent after increasing production of the 737 jet. Boeing said customers are adding to existing orders and placing new ones. ITW rose about 2.5 percent after it raised the lower end of its fiscal second-quarter earnings target.

More good news on industrials came from the New York Federal Reserve, which said regional manufacturing expanded for an 11th straight month in June.

“We’re still seeing factories and manufacturing help provide a little stimulus for the economy here,” said Michael Church, president at Addison Capital Group in Philadelphia.

Technology stocks got a boost after research firm International Data Corp. raised its forecast for personal computer shipments for 2010. IDC said shipments will be up almost 20 percent from 2010, compared with a forecast of a 15-percent increase made in April. Microsoft Corp. rose 4.3 percent and Hewlett Packard Co. rose 2.4 percent.

A gain in the euro and a drop in the dollar signaled that traders are less worried that debt problems in Europe will disrupt a global recovery. The euro, which is seen as measure of investors’ confidence in the European economy, traded at $1.2339. Last week, it fell to a four-year low of $1.1878.

Stocks had dropped along with the euro since May amid growing concerns that weaker European countries such as Greece would default on debt.