* Global manufacturing data buoys markets
* General Mills forecasts better earnings, stocks rise
* Oil and commodity stocks gain
* Dow up 1.2 pct, S&P 500 up 1 pct, Nasdaq up 1.2 pct
* For up-to-the-minute market news click [STXNEWS/US]
(Updates to midday, changes byline)
By Rachel Chang
NEW YORK, July 1 (Reuters) - U.S. stocks rose on Wednesday
as improving prospects for manufacturing around the world
suggested the global economy was recovering.
U.S manufacturing contracted less than expected in June,
underscoring growing sentiment among investors that corporate
profits will benefit from the recovery. U.S. earnings season
gets into gear next week.
General Mills (GIS.N), the maker of Cheerios cereal, gave
investors more reason to be optimistic about the economy after
the food company forecast better-than-expected earnings for
the current fiscal year, and its stock rose 3.3 percent to
$57.89. The S&P Consumer Staples sector .GSPS advanced 2.1
percent.
In the latest readings on the global economy, surveys from
Europe showed manufacturing was shrinking less than initially
thought and in China's case, growing modestly. For details,
see [ID:nPEK138883]
Prospects of a better world economy lifted commodity
prices, boosting stocks in the energy and materials sectors.
Shares of Chevron Corp (CVX.N) rose 0.6 percent to $66.69
while Alcoa Inc (AA.N) gained 1.7 percent to $10.50.
"For several weeks, we've seen some stronger economic
numbers in Europe and China," said Janna Sampson, co-chief
investment officer at OakBrook Investments in Lisle, Illinois.
"And in the U.S., (things) are not as bad as what people were
thinking."
The Dow Jones industrial average .DJI added 100.82
points, or 1.19 percent, to 8,547.82. The Standard & Poor's
500 Index .SPX gained 9.56 points, or 1.04 percent, to
928.88. The Nasdaq Composite Index .IXIC rose 21.75 points,
or 1.19 percent, to 1,856.79.
The S&P 500 on Tuesday ended its best quarter in more than
a decade, but the index is up only 2.8 percent for the year.
In more economic news, the ADP Employer Services payroll
report showed private employers cut 473,000 jobs in June, but
global outplacement consultancy Challenger, Gray & Christmas
data showed planned layoffs at U.S. firms fell to a 15-month
low in June.
(Editing by Jan Paschal)
