The Institute for Supply Management's index indicated that manufacturing expanded again in last month. Analysts surveyed by FactSet had expected a contraction.
The Dow Jones industrial average immediately turned higher after the report came out at 10 a.m. By 10:20 a.m. the Dow was up 42 points, or 0.4 percent, at 11,655. It was down as many as 46 points in early trading.
The Standard & Poor's 500 index rose 3, or 0.3 percent, at 1,222. The Nasdaq composite index rose 10, or 0.4 percent, at 2,589.