US stocks rose on Monday as fears about possible attacks on US financial institutions receded and strong earnings from consumer products maker Procter & Gamble Co helped push up the blue-chip Dow.
The Dow Jones industrial average was up 40.55 points, or 0.40 percent, at 10,180.26. The Standard & Poor's 500 Index was up 4.98 points, or 0.45 percent, at 1,106.70. The technology-laced Nasdaq Composite Index was up 4.73 points, or 0.25 percent, at 1,892.09.
The warnings about the possible attacks depressed stocks earlier in the session but as the day progressed, investors were reassured by the fact that the government had uncovered the information.
Citigroup Inc, Prudential Financial Inc, the International Monetary Fund, the New York Stock Exchange and the World Bank were included in a "high" level threat alert by the Department of Homeland Security, which said the attacks on these landmark financial buildings in New York City, Newark, New Jersey, and Washington, D.C., could come from al Qaeda.
"The terrorism thing was unnerving, especially if you're in Manhattan, but it cuts two ways because the fact that they seem to have found this intelligence and are on top of this situation is encouraging." said Milton Ezrati, senior economic strategist at Lord Abbett & Co.
The warnings boosted US crude oil prices to a record high of $43.92 a barrel in overnight trading before prices slipped to $43.70 and then rocketed back up to $43.90 in early afternoon trading in New York. Higher oil prices typically cut into corporate profits, as crude is a vital component of transport and manufacturing.
A government report showing manufacturing growth added some bright spots to an otherwise dark morning.
The Institute for Supply Management said US manufacturing expanded in July for a 14th straight month, matching analysts' expectations.
But in another report, the government said outlays for US construction fell unexpectedly in June as spending on housing dropped for the first time in 16 months.
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