U.S. stocks pared early gains but still closed in green territory Tuesday, as investors weighed upbeat economic data against a possible U.S.-led strike against Syria.
The Dow Jones Industrial Average increased 23.65 points, or 0. 16 percent, to 14,833.96 points. The Standard & Poor's 500-stock Index was up 6.80 points, or 0.42 percent, to 1,639.77 points. The Nasdaq Composite Index jumped 22.74 points, or 0.63 percent, to 3, 612.61 points.
Wall Street rose on a batch of economic data around the world but surrendered part of its early gains after leaders of both parties in the Republican-controlled House of Representatives expressed their support for President Barack Obama's call for action on Syria.
House Speaker John Boehner said he supported Obama's call for action and called for members of Congress to support the president. House Minority Leader Nancy Pelosi, who also supports military action, said she doesn't believe Congress would reject a draft resolution authorizing military action.
Obama was meeting Tuesday with U.S. Congress leaders to seek approval of the resolution. The president urged Congress for "a prompt vote" to authorize military action against Syria.
The resolution will be debated and voted on in Congress when lawmakers return to session on Sept. 9 from their summer recess.
On the economic data, economic activity in the U.S. manufacturing sector expanded in August for the third consecutive month, according to the Institute for Supply Management. The Purchasing Managers' Index (PMI) registered 55.7, slightly up from July's reading of 55.4.
"Manufacturing activity continued its strong Q3 with another solid reading this month. This first read from August will allow investors to put a positive spin on any mild economic data disappointments through the rest of this week," FTN Financial Senior Economist Jay Morelock said in note Tuesday.
The U.S. Department of Commerce also reported Tuesday that construction spending in July rose 0.6 percent to a seasonally adjusted annual rate of 900.8 billion U.S. dollars, beating market consensus.
Positive Chinese PMI data also gave a boost to the market rally. The final reading for China's manufacturing PMI rose to a four- month high of 50.1 in August, reflecting stabilized manufacturing activities, said the HSBC Monday.
In corporate news, Microsoft shares tumbled 4.55 percent Tuesday to end at 31.88 dollars apiece after the software giant agreed to acquire Nokia's phone unit for 7.2 billion dollars, whereas U.S.-listed shares of Nokia soared 31.28 percent to 5.12 dollars on the news.
Bank of America shares rose in after-hours trading after Bank of America Corporation announced late Tuesday that it agreed to sell its remaining equity investment in China Construction Bank Corporation.
On other markets, oil prices rose Tuesday, as the possibility of a military strike against the Syrian government triggered concerns over oil supplies in the Middle East, where one-third of world's crude is pumped. Oil prices were driven higher for the whole of last week.
Light, sweet crude for October delivery moved up 0.89 dollars to settle at 108.54 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery gained 1.67 dollars to close at 115.68 dollars a barrel.
The U.S. dollar strengthened against most major currencies as positive U.S. manufacturing data fueled expectations that the Federal Reserve would scale back its monetary stimulus soon.
