MARKET SNAPSHOT: U.S. Stocks Tally Strong Gains After Upbeat Data

By Kate Gibson

U.S. stocks climbed Monday after UAL Corp. and Continental Airlines Inc. said they would join forces and another round of economic data provided further evidence of a continuing recovery.

The Dow Jones Industrial Average (DJI) rose 65.83 points to 11,074.44, with 25 of its 30 components trading higher, led by Boeing Co. (BA), up 1.5%.

The S&P 500 Index (SPX) climbed 5.5 points to 1,192.19.

Consumer discretionary and industrial shares led the gains, with materials and energy were the laggards among the S&P's 10 industry groups.

"The top groups continue to be the most cyclical and tied to the economic recovery," said Paul Nolte, managing director at Dearborn Partners.

Industrial stocks have led the market recovery from the beginning, while 'safer' groups like utilities have been weak.

The Nasdaq Composite Index (RIXF) added 15.76 points to 2,476.95.

For every stock on the decline nearly two were rising on the New York Stock Exchange, where 304 million shares were traded as of 11 a.m. Eastern. Composite volume neared 1.5 billion.

The Institute for Supply Management reported improved conditions for the nation's manufacturers, with its index jumping to 60.4% in April from 59.6% in March.

The Commerce Department estimated public spending on construction projects climbed in March. .

Separately, the government estimated U.S. consumer spending increased to a record high in March. .

In another signal that corporate America is returning to deal-making, United parent UAL (UAUA) is acquiring Continental (CAL) in a stock deal valued at about $3.2 billion. .

Noting that the airline merger comes in the wake of last week's announcement that Hewlett-Packard Co. (HPQ) would acquire Palm Inc. (PALM), one analyst noted a positive trend in the spate of M&A.

"Markets tend to react favorably to these types of deals as they figure business conditions must be improving and the consolidation should create even stronger companies," said Andrew Fitzpatrick, director of investments at Hinsdale Associates.

Greece's debt problems abated some after the European Union and the International Monetary Fund reached agreement on a $145 billion rescue plan.