U.S. Stocks Close Higher As ISM Survey Results Boost Investor's Risk-Appetite

4:08 PM, Apr 2, 2012 -- U.S. stocks rose Monday, the first trading day of Q2, after the Institute for Supply Management's factory index rose to 53.4% in March from 52.4% in February. While the reading was slightly below analysts' expectations for 53.5%; the fact that there was growth, compared to the previous month, was digested as positive by investors.

Separately, the Commerce Department said construction spending fell 1.1% in February versus expectations of a 0.7% gain.

Stocks started lower today with worries about a recession in Europe intensifying after a report showed the region's manufacturing sector shrank for an eighth straight month in March. Adding mixed sentiment was a weekend release of data by China that contradicted the recent HSBC survey on manufacturing. Last week's HSBC data showed a contraction in monthly activity, whereas an official survey by China released over the weekend showed an improvement.

In company news, shares of Avon Products (AVP) were higher after the company turned down a $10 billion approach by Coty Inc., according to a person with knowledge of the situation. For now, Avon is focused on finding a chief executive officer and is close to choosing a replacement for current CEO Andrea Jung, a company source told Bloomberg News, who declined to be identified because the matter is private. The New York-based company could become open to talks once a CEO is selected, the person added.

Also, Groupon Inc. (GRPN) shares slid after the online coupon company late Friday revised its Q4 results after finding problems in the way it accounted for money set aside for customer refunds. Groupon's auditor also attached a "material weakness" warning to its annual report because of the issue. The move also caused at least two analysts to downgrade GRPN shares on Monday morning.

Commodities recovered today, as the U.S. data eased concerns about a global economic slowdown. Crude-oil futures rose $1.26 to $104.28 a barrel on the New York Mercantile Exchange; gold futures rose $12.90 to $1,682.20 an ounce on the Comex division of the Nymex. Copper, silver, platinum and palladium all joined in on the rally.

Here's where the U.S. Markets stood at end-of-day:

Dow Jones Industrial Average up 52.45 (+0.40%) to 13,264.49

S&P 500 up 10.43 (+0.74%) to 1,418.90

NASDAQ Composite up 28.13 (+0.91%) to 3,119.70

GLOBAL SENTIMENT

Nikkei 225 up 0.26%.

Hang Seng Index down 0.16%.

China Shanghai Composite Index up 0.47%.

FTSE 100 up 2.31%

UPSIDE MOVERS

(+) TWER, 4G service provider signs Wi-Fi deal with unnamed company.

(+) THRX, GlaxoSmithKline (GSK) increases stake from 18.3% to 26.8%.

(+) WWIN, Chairman and CEO Offers to Take Company Private.

(+) RNDY, Added to Russel 2000 Index

DOWNSIDE MOVERS

(-) AEZS, Key Phase III for cancer drug candidate disappoints.

(-) GFA , Homebuilder reports steep 2011 net loss, reversing year-ago profit.

(-) WIFI, Second Largest Shareholder Sells Shares

(-) TELK, Company's previously announced 1-for-30 reverse stock split came into effect.