Wall Street nears 10,000

Investors sent stocks surging Monday, propelling the Dow Jones industrials up more than 115 points and into the shadow of 10,000 after a pair of reports showed better-than-expected growth in the nation’s manufacturing sector and construction spending. Retail stocks dipped although stores had solid sales over the Thanksgiving weekend.

The Dow closed up 116.59, or 1.2 percent, at 9,899.05, following a gain last week of 1.6 percent. The last time the index of 30 actively traded blue chip stocks closed higher was May 31, 2002, when it ended the day at 9,925.30; it last closed above 10,000 on May 24, 2002.

The Nasdaq composite index closed at its highest point in nearly two years, up 29.56, or 1.5 percent, at 1,989.82, following a weekly gain of 3.5 percent. The tech-dominated index last closed higher on Jan. 15, 2002, at 2,000.91.

The Standard & Poor’s 500 index also reached a significant high, rising 11.92, or 1.1 percent, to close at 1,070.12, after gaining 1.5 percent last week. The S&P last closed higher on May 28, 2002, when it stood at 1,074.55.

Commerce

Reports boost hope of economic recovery

Construction spending in October registered its best month on record and an index of manufacturing activity in November posted its strongest performance in nearly two decades, a pair of encouraging signs that the economic recovery has staying power.

The Commerce Department reported Monday that the total value of building projects under way came in at a seasonally adjusted $922 billion in October, representing a 0.9 percent increase from the previous month.

The $922 billion level was a monthly high, and the percentage change from the previous month was even better than the 0.6 percent rise that analysts were forecasting.

In a second report, manufacturing activity grew in November for the fifth month in a row.

Merger

Hartford to buy insurance group

The Hartford Financial Services Group has agreed to purchase CNA Financial Corp.’s group benefits business for an estimated $500 million, the insurance companies announced Monday.

Under the deal, The Hartford will buy CNA’s group life and accident insurance operations and its short- and long-term disability business. Some specialty businesses also will be sold, officials said. The combination could result in elimination of 10 percent of the combined work force of about 3,300 people in the operation’s business, a Hartford spokeswoman said.