* Manufacturing, housing data reinforce recovery hopes
* Dollar weakness spurs run-up in commodity shares
* Dow up 1.4 pct, S&P 500 up 1.4 pct; Nasdaq up 1.7 pct
* For up-to-the-minute market news, click [STXNEWS/US] (Changes byline, updates to late afternoon)
By Caroline Valetkevitch
NEW YORK, Dec 1 (Reuters) - U.S. stocks climbed on Tuesday as a weak dollar boosted natural resource companies’ shares and housing data reassured investors about the recovery.
Sentiment also got a lift as concerns receded about the impact of Dubai’s debt woes, which some had feared could lead to deepening global financial turmoil.
The S&P materials index .GSPM climbed 2 percent, helped by shares of commodity-oriented companies like U.S. Steel Corp (X.N), up 2.4 percent at $45.72; Alcoa Inc (AA.N), up 3.1 percent at $12.91, and Newmont Mining Corp (NEM.N), up 4.6 percent at $56.08.
Data showed pending sales of previously owned U.S. homes rose more than expected to their highest level in 3-1/2 years in October. The Dow Jones home construction index .DJUSHB gained 2.1 percent. For details, see [ID:nN01495024]
“To sell the dollar (and) to buy higher-return assets such as stocks, commodities, gold and oil, that’s the recovery trade. People will ignore the long-term effects of a declining dollar for the balance of this year,” said Jim Awad, managing director at Zephyr Management in New York.
Also, he said, “people are relieved about Dubai.”
The Dow Jones industrial average .DJI was up 143.44 points, or 1.39 percent, at 10,488.28. The Standard & Poor’s 500 Index .SPX was up 15.25 points, or 1.39 percent, at 1,110.88. The Nasdaq Composite Index .IXIC was up 36.06 points, or 1.68 percent, at 2,180.66.
The U.S. dollar index .DXY fell 0.8 percent against a basket of currencies as waning anxiety about Dubai limited the greenback’s safe-haven appeal. [ID:nN01332891]
Crude oil futures gained $1.47 to $78.75 a barrel, while the S&P Energy Index .GSPE advanced 1.8 percent. Shares of Exxon Mobil Corp (XOM.N) shot up 1.5 percent to $76.17.
In the day’s housing data, sales advanced to their highest level in 3-1/2 years, according to data from the National Association of Realtors.
Other data showed construction spending was flat in October, above the expectation for it to slide in the month. In addition, the Institute for Supply Management said that the manufacturing sector expanded in November, though the expansion was less than expected. [ID:nN01482360] and [ID:nN01377451]
Staples Inc SPLS.O jumped 6.1 percent to $24.73 after it reported adjusted third-quarter earnings that beat expectations and forecast sales growth in its fourth quarter. [ID:nN30469390] (Editing by Jan Paschal) ((email@example.com; +1 646 223 6393; Reuters Messaging:firstname.lastname@example.org)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: topnews.reuters.com))