NEW YORK: Wall Street was happy to see Larry Summers go.
Stocks rose on Monday after Summers, who had been the leading candidate to replace Federal Reserve Chairman Ben Bernanke, withdrew his name from consideration.
Summers, a former Treasury secretary, was viewed as being more likely to rein in the government’s massive stimulus program, which has kept interest rates low and boosted corporate profits.
Stocks were also helped by news that U.S. factory output rose 0.7 percent in August, the most in eight months.
The Dow Jones industrial average rose 118.72 points, or 0.8 percent, to close at 15,494.78. The Standard & Poor’s 500 index rose 9.61 points, or 0.6 percent, to 1,697.60. The Nasdaq composite fell 4.34 points, a fraction of a percent, to 3,717.85, pulled down by a loss in Apple.
Nine of 10 sectors in the S&P 500 rose, led by industrial stocks. Only technology stocks declined.
Among companies making big moves:
• Homebuilders rose as investors were encouraged by a decline in long-term interest rates. The biggest gainer in percentage terms was PulteGroup, up 62 cents, or 3.8 percent, to $17.14.
• Boise rose $2.60, or 26 percent, to $12.56 after news that Packaging Corp. of America is buying it for $1.27 billion. Packaging Corp. rose $5.88, or almost 11 percent, to $60.43.
• Apple continued to slide, down $14.78, or 3.2 percent, to $450.10. Apple has fallen 11 percent since announcing its new iPhone lineup last week.