By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rallied on Tuesday, with the S&P 500 continuing its longest stretch of gains since mid-July, after upbeat data from China and amid heightened diplomacy on Syria.
"The market is happy we're not going to have to go in and shoot missiles," said JJ Kinahan, chief strategist at TD Ameritrade in Chicago, referring to Syria. "And now we're in spitting distance of 1,700; we may go up and test that over the next few days," he said of the S&P 500 Index (SPX).
Extending gains into a sixth consecutive session, the index rose 12.28 points, or 0.7%, to 1,683.99, with industrials leading gains that included all of its 10 major industry groups.
The Dow Jones Industrial Average (DJI) rose as many as 129 points, and ended at 15,191.06, up 127.94 points, or 0.9%.
Both the S&P 500 and Dow industrials finished the session near four-week highs, while the Nasdaq Composite (RIXF) ended at a level not seen since 2000.
The Nasdaq ended at 3,729.022, up 22.84 points, or 0.6%.
After a two-session runup, Apple Inc. (AAPL) lost 2.3% after the consumer-technology company unveiled its new flagship iPhone 5S, along with a less costly but colorful iPhone 5C. Follow streaming coverage of Apple.
"I would say the real summary is 'buy the rumor, sell the news' as the stock is up almost 10% over the last month," said Kinahan about Apple.
For every share falling, nearly two gained on the New York Stock Exchange, where 773 million shares traded.
Composite volume neared 3.6 billion.
"The markets are right now breathing a sigh of relief that we're moving closer to a diplomatic solution as opposed to a military solution in Syria," said Darrell Cronk, regional chief investment officer for Wells Fargo Private Bank. "Any military solution would cause some angst" by creating uncertainty as to its scale and duration, Cronk said.
Tuesday's developments included a French plan to submit a Russian-backed proposal to confiscate Syria's chemical arms to the United Nations, with Interfax reporting the regime in Syria had said it would go along with the plan. Read streaming coverage of the Syria conflict.
President Barack Obama is scheduled to detail his plans regarding Syria in a nationally televised address at 9 p.m. Eastern.
"Overnight, we had really strong economic data out of China, both their industrial production numbers and their retail-sales numbers were up double digits over year-ago numbers. That has Asian markets up nicely," Cronk added of reports from Beijing's National Bureau of Statistics.
The data had China's industrial output rising 10.4% in August from a year ago and retail sales gaining 13.4%. Wall Street finished higher on Monday after China reported export growth that surpassed expectations.
Equities are benefitting amid an "asset redeployment as people get out of their gold positions," said Kinahan at TD Ameritrade. "Gold is probably selling off today and yesterday on Syria news. Gold, oil and the U.S. dollar tend to be affected by geopolitical risk," said Cronk at Wells Fargo.
Gold futures (GCZ3) slid $22.70, or 1.6%, to $1,364 an ounce, while the price of crude(CLV3) fell $2.13, or 1.9%, to $107.39 a barrel and on the New York Mercantile Exchange.
The dollar(DXY) gained against the currencies of major U.S. trading partners and Treasury prices fell, with the yield on the 10-year note (10_YEAR) up five basis points to 2.973%.
In coming weeks, the Dow industrials are in for a dramatic makeover.
As of the open on Sept. 23, Goldman Sachs Group Inc. (GS) will replace Bank of America Corp. (BAC), Visa Inc. (V) is evicting Hewlett-Packard Co. (HPQ), and Nike Inc. (NKE) will bump Alcoa Inc. (AA), S&P Dow Jones Indices said on Tuesday.
"You've replaced two stocks that essentially don't matter in Alcoa and Bank of America with two that do," said Dan Greenhaus, chief market strategist at BTIG LLC. Read a commentary piece: Getting booted from Dow is a blessing.
Read a blog post about the Dow ETF.
-Kate Gibson; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
09-10-13 1755ETCopyright (c) 2013 Dow Jones & Company, Inc.
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