US STOCKS-Wall St rises, buoyed by results, manufacturing data

Reuters

* Chevron falls after weak revenue, weighing on Dow

* Solar companies rally after First Solar outlook

* ISM Manufacturing index tops expectations

* Indexes up: Dow 0.5 pct, S&P 0.4 pct, Nasdaq 0.3 pct

By Ryan Vlastelica

NEW YORK, Nov 1 (Reuters) - U.S. stocks rose on Friday,rebounding following two days of losses as solar companiesjumped on results and strong data on manufacturing.

Equities have been pressured since Wednesday, when a FederalReserve statement raised concerns about when the central bankwould begin to scale back its stimulus program, which hascontributed to the S&P 500's advance of 23 percent this year.Some investors interpreted comments in the statement assuggesting the Fed would begin tapering stimulus earlier thanexpected.

The rally has taken the Dow and S&P repeatedly to recordhighs, leading some analysts to call for a pullback, especiallyin the wake of some signs of slowing growth, like weak economicdata and an earnings season marked by tepid revenue.

"I'm not comfortable with the market at all-time highs,especially with earnings being mediocre, but the manufacturingreport was better than expected, and where else can you go withthe Fed putting so much liquidity into the system?" said MarkGrant, managing director at Southwest Securities in FortLauderdale.

The U.S. manufacturing sector expanded at its fastest pacein 2-1/2 years last month, a rate that was stronger thanexpected, according to the Institute for Supply Management'ssurvey, which followed the similarly strong Chicago PurchasingManager's Index on Thursday.

Chevron Corp was the latest company to disappoint onresults as its third-quarter revenue came in below expectations.That sent shares of the Dow component down 2 percent to $117.55.

The Dow Jones industrial average was up 81.91 points,or 0.53 percent, at 15,627.66. The Standard & Poor's 500 Index was up 6.79 points, or 0.39 percent, at 1,763.33. TheNasdaq Composite Index was up 11.75 points, or 0.30percent, at 3,931.46.

For the week thus far, the Dow is up 0.4 percent, the S&P isup 0.3 percent and the Nasdaq is down 0.2 percent. Both the Dowand S&P are on track for their fourth straight week of gains.

American International Group Inc fell 6.3 percent to$48.41 as the S&P's biggest decliner a day after reportingthird-quarter earnings that slightly beat expectations, thoughanalysts had expected better results in the insurer's consumerlines business.

First Solar Inc soared 13 percent to $56.76 afterits results beat expectations and the company raised itsfull-year profit outlook. Among its peers, Yingli Green Energy climbed 5.3 percent to $6.32 and Canadian Solar was up 7.2 percent to $24.62.

With about 71 percent of S&P 500 companies having reported,68.2 percent have topped Wall Street's expectations, above thelong-term average of 63 percent, according to Thomson Reutersdata. However, only 53.6 percent have topped revenue forecasts,below the 61 percent average since 2002.

In company news, Ford Motor Co shares rose 0.6 percentto $17.21 after the company reported October sales growth of 14percent.

Container Store Group Inc shares jumped 93 percentto $34.63 in their trading debut after the company priced itsinitial public offering at the top end of an increased pricerange.

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