* ISM manufacturing, construction spending data due
* Indexes up: Dow 0.4 pct, S&P 0.5 pct, Nasdaq 0.x pct
By Rodrigo Campos
NEW YORK, Dec 3 The S&P 500 rose for a fourth
straight day on Monday as upbeat Chinese factory data lifted
sentiment, but concerns over budget dealings in Washington are
expected to keep traders cautious.
China's economy picked up in November even as a broader
global recovery remains fragile, with factory activity patchy
elsewhere in Asia as demand from the developed world remains
"The good news out of China is encouraging and that's adding
to the risk trade this morning," said Peter Cardillo, chief
market economist at Rockwell Global Capital in New York.
Markets have focused for weeks on negotiations in Washington
over some $600 billion in spending cuts and tax hikes scheduled
to kick in next year that could tip the U.S. economy back into
U.S. Treasury Secretary Timothy Geithner pushed Republicans
on Sunday to offer specific ideas to cut the deficit and
predicted that they would agree to raise tax rates on the rich
to obtain a year-end deal to avoid the "fiscal cliff."
"Right now for both sides it's all about staying firm and
determined to go to the very end," Cardillo said about the
negotiations. "But we all know the stakes are high and
(Congress) can't be that stupid as to induce another recession."
The Dow Jones industrial average rose 53.45 points,
or 0.41 percent, to 13,079.03. The S&P 500 gained 6.79
points, or 0.48 percent, to 1,422.97. The Nasdaq Composite
added 18.21 points, or 0.61 percent, to 3,028.45.
The S&P 500 on Friday closed its fifth positive month in six
and is up 8 percent since the end of May.
The Institute for Supply Management releases its November
manufacturing index at 10 a.m. (1500 GMT). Economists in a
Reuters survey expect a reading of 51.3 for the main index
versus 51.7 in October.
Also at 10 a.m., the Commerce Department releases October
construction spending data. Economists forecast a rise of 0.5
percent compared with a 0.6 percent rise in September.