* Syria accepts Russia's diplomatic proposal to end crisis
* Apple shares fall after unveiling new products
* Goldman Sachs, Visa, Nike to be added to Dow industrials
* McDonald's reports August sales, shares rise
* Indexes up: Dow 0.9 pct, S&P 0.7 pct, Nasdaq 0.6 pct
By Ryan Vlastelica
NEW YORK, Sept 10 U.S. stocks rose on Tuesday,
with the S&P 500 index advancing for its longest stretch since
early July, as an alternative proposal emerged that could avert
a possible Western military strike on Syria.
Encouraging economic data from China reinforced the view the
world's second-largest economy was stabilizing and gave
investors further reason to buy.
All 10 S&P industry sectors ended higher, though energy
was pressured by a drop in crude oil prices. Tech shares
also came off their highs as Apple Inc fell
sharply, weighing on the S&P and Nasdaq.
Analysts said new developments about Syria reduced risk for
financial markets as Syria accepted a Russian proposal to give
up chemical weapons and win a reprieve from U.S. military
"Several things continue to calm investors and make equities
look attractive," said Paul Zemsky, head of asset allocation at
ING Investment Management in New York.
"The new proposal creates a potential scenario where the
U.S. doesn't have to go in militarily. We were worried not just
about Syria, but also the impact that this would spread to other
nations in the Middle East."
After the S&P 500 posted its worst monthly performance since
May 2012 in August, the broad index has rallied 3.1 percent over
the past six straight sessions of gains.
The Dow Jones industrial average was up 127.94
points, or 0.85 percent, at 15,191.06. The Standard & Poor's 500
Index was up 12.28 points, or 0.73 percent, at 1,683.99.
The Nasdaq Composite Index was up 22.84 points, or 0.62
percent, at 3,729.02.
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.
With that threat seemingly less likely, oil prices fell 2
percent on Tuesday.
Shares of Apple fell 2.3 percent to $494.65 after the
company's latest product unveilings, which included two new
versions of its iPhone line.
About 6.5 billion shares changed hands on the New York Stock
Exchange, the Nasdaq and NYSE MKT, above the daily average so
far this year of about 6.24 billion shares. About 64 percent of
companies traded on the New York Stock Exchange closed higher on
Tuesday while 64 percent of Nasdaq-listed shares ended up.
Economic data in China showed stronger-than-expected
industrial output while retail sales grew at the fastest pace
"Investors were worried about how far China would have to
fall until it found some kind of economic equilibrium, and it
looks like it found the level," said Zemsky, who helps oversee
$180 billion. "That calms fears that the major sources of growth
are still out there and not sputtering along."
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 America Corp, Hewlett-Packard Co
and Alcoa Inc, respectively. The changes will
take effect on Sept. 23.
Goldman rose 3.5 percent to $165.14 while Visa gained 3.4
percent to $184.59 and Nike advanced 2.2 percent to $66.82.
Alcoa lost 0.4 percent to $8.05, Bank of America added 0.9
percent to $14.61 and HP shed 0.4 percent to $22.27.
McDonald's Corp gained 0.5 percent to $96.89 after
the fast-food restaurant chain reported a higher-than-expected
1.9 percent increase in global sales at established restaurants
Urban Outfitters Inc slumped 10 percent to $38.35
as the S&P's biggest loser after Janney Montgomery Scott cut its
price target on the stock to $46 from $52.