Stocks sharply advance; Dow closes up 3%

NEW YORK (AP) -- Wall Street barreled higher Wednesday, lifting the Dow Jones industrials more than 250 points, as investors celebrated a string of positive economic data. The rally brought the market's major indexes back to levels not seen since the summer. Trading was light in the pre-holiday session, but the gains were big with the Nasdaq composite index also rising sharply, picking up more than 40 points.
The sharp advance defied expectations that stocks would pull back after nearly two months of rallies on Wall Street and that traders would not want to commit to stocks ahead of the holiday weekend.
Investors first got a lift from a jump in consumer spending, but investors were also pleased by a spike in orders to U.S. factories for big-ticket items and an increase in manufacturing activity in the Midwest.