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Byline: CHRISTINA WISE
Upbeat reports on manufacturing and consumer sentiment in May raised hopes Friday that the recovery could be picking up steam.
Investors zeroed in on Chicago factory data and confidence for May, looking past weak consumer spending data for April.
The Dow industrials added 1.6%. The Nasdaq rose 1.3%. Trading volume expanded. Bond yields edged up.
The National Association of Purchasing Management -- Chicago said its Business Barometer surged to 52.2 in May from 47.6 in April. The index of factory activity hadn't been above 50, signaling expansion, since February.
The production component surged to 60.5 from 51.0 the month before and new orders bounced to 54.6 from 44.6. Meanwhile, falling energy prices pushed the prices paid index to 53.7 from 55.9 in April.
At the same time, the University of Michigan's final consumer sentiment gauge for May showed confidence mostly holding at improved postwar levels.