* Syria accepts Russia's diplomatic solution to Syria crisis
* China data points to stabilizing economy
* Goldman Sachs, Visa, Nike to be added to Dow
* McDonald's reports August sales, shares rise
* Indexes up: Dow 0.8 pct, S&P 0.7 pct, Nasdaq 0.7 pct
By Ryan Vlastelica
NEW YORK, Sept 10 U.S. stocks rose on Tuesday as
an alternative solution emerged to the Syrian crisis that could
avert a possible Western military strike, buoying market
Also lifting the S&P 500 index for a sixth straight day was
encouraging economic data from Chinal. Nine of the 10 S&P 500
sectors rose, the only exception being energy, which
dipped with a drop in crude oil prices.
Fears of action against Syria eased after U.S. President
Barack Obama said Monday he saw a possible breakthrough in the
situation after Russia proposed that Syria hand over its
chemical weapons for destruction, a proposal Syrian Prime
Minister Wael al-Halki said his country supported.
While such a move could avert a potential Western-led
military strike, the White House said Obama would press ahead
with his plan to ask Congress to approve the use of military
force against the country.
"We don't know if this is just talk or if it could happen,
but right now tensions have cooled and the market likes that,"
said Michael Matousek, head trader at U.S. Global Investors Inc
in San Antonio."
The Dow Jones industrial average was up 116.90
points, or 0.78 percent, at 15,180.02. The Standard & Poor's 500
Index was up 11.62 points, or 0.70 percent, at 1,683.33.
The Nasdaq Composite Index was up 21.72 points, or 0.59
percent, at 3,727.91.
Geopolitical uncertainty has driven market movement in
recent weeks, with investors especially watching global oil
prices for any sign that military action could constrain supply.
Crude fell 2.5 percent on Tuesday.
Economic data in China showed stronger-than-expected
industrial output while retail sales grew at the fastest pace
this year, reinforcing signs that the world's second-largest
economy was stabilizing after slowing for more than two years.
On Monday, Wall Street climbed following strong Chinese export
After suffering its worst monthly performance since May 2012
in August, the S&P has rallied 3.1 percent over the past six
sessions, its longest winning streak since early July.
S&P Dow Jones Indices announced the biggest shake-up for the
Dow Jones Industrial Average in almost a decade, with Goldman
Sachs Group Inc, Visa Inc and Nike Inc
replacing Bank of American Corp,Hewlett-Packard Co
and Alcoa Inc, respectively. The changes will
take effect on Sept. 23.
Goldman rose 3 percent to $164.35 while Visa gained 2.5
percent to $183 and Nike advanced 2 percent to $66.71. Alcoa
lost 0.1 percent to $8.07, Bank of America added 0.4 percent to
$14.54 and Hewlett-Packard shed 1.5 percent to $22.02.
"We're not making any moves on the changes, but some market
players will try and trade off the ones being added, attempting
to get ahead of fund rebalancing," said Matousek, who helps
oversee about $1.3 billion. "Over the long term, this shouldn't
skew those names one way or the other."
McDonald's Corp gained 0.7 percent to $97.08 after
the fast-food restaurant chain reported a better-than-expected
1.9 percent increase in global sales at established restaurants
Urban Outfitters Inc slumped 11 percent to $38.14
after Janney Montgomery Scott cut its price target on the stock
to $46 from $52.
Apple Inc is expected to introduce a cheaper
version of the iPhone on Tuesday, bringing one of the industry's
costliest smartphones within reach of the masses in poorer
emerging markets. Apple fell 0.6 percent at $503.11.