U.S. stocks rose the most in more than a month as better-than-estimated growth in American and Chinese manufacturing bolstered confidence in the global economic recovery.

Alcoa Inc., the largest U.S. aluminum producer, advanced 2.7 percent as metal prices gained. Apple Inc. rose 2.4 percent before unveiling an updated version of its Apple TV set-top box. Burger King Holdings Inc. surged 8.4 percent on a report the fast-food chain may get a buyout offer. Eli Lilly & Co. jumped 2.1 percent after winning a court order banning sales of generic versions of its attention-deficit treatment drugs.

The Standard & Poor’s 500 Index rose 2.6 percent to 1,076.05 at 10:33 a.m. in New York, the most since July 22. The Dow Jones Industrial Average advanced 225.61 points, or 2.3 percent, to 10,240.33.

“We got good economic news on the manufacturing side and on the employment side,” said Michael Binger, a Minneapolis-based fund manager at Thrivent Asset Management, which oversees about $70 billion. “There’s a sigh of relief among the long-only funds and the short-sellers are saying that maybe the sell-off is over. That’s why we get this explosion in the market after the mostly negative economic data from the U.S. throughout the summer.”

The S&P 500 dropped 4.7 percent last month amid growing concern the economic rebound was stalling. The benchmark for U.S. stocks is trading at less than 12.6 times forecast earnings of its companies, near the lowest valuation since March 2009. September is historically the worst month for stocks with the S&P 500 falling 0.7 percent and the Dow dropping 1 percent on average since 1950, according to the Stock Trader’s Almanac.

Manufacturing Expansion

The Institute for Supply Management’s factory index unexpectedly rose to 56.3 in August from 55.5 in July. The median estimate of 78 economists surveyed by Bloomberg News forecast the measure would fall to 52.8. Readings above 50 signal growth.

The index added less than 0.1 percent yesterday as consumer confidence rose, offsetting minutes from the latest Federal Open Market Committee meeting that disappointed investors speculating the central bank would resume “quantitative easing,” or the purchase of debt, to bolster the economy.

U.S. futures joined a global advance in equities after China’s purchasing managers’ index rose to 51.7 from 51.2, exceeding forecasts, according to a government-backed report. A separate PMI released by HSBC Holdings Plc and Markit Economics gained to 51.9 from 49.4. In Australia, gross domestic product advanced 1.2 percent from a revised 0.7 percent in the first quarter. That beat the median economist estimate for a 0.9 percent gain, Bloomberg data show.

Bull Market

Since the beginning of the bull market in March 2009 there have been 10 other days when S&P 500 futures were up more than 1 percent at 8 a.m. and the market has ended the day higher 80 percent of the time, with the S&P 500 averaging a 1.7 percent gain, according to research from Birinyi Associates Inc., the Connecticut-based research and investment firm founded by Laszlo Birinyi.

Futures maintained gains even after ADP Employer Services said companies in the U.S. unexpectedly cut 10,000 workers in August. The median estimate of 35 economists surveyed by Bloomberg was for a gain of 15,000. Another report from outplacement firm Challenger, Gray & Christmas Inc. showed job cuts announced by U.S. employers fell 55 percent to 34,768 last month from August 2009.

Economists project in two days that a Labor Department report will show companies may have added 42,000 workers to their payrolls in August. The average from May through July was 51,000 jobs, down from 200,000 in the previous two months.

Alcoa, Freeport-McMoRan

Alcoa increased 2.6 percent to $10.49 and Freeport-McMoRan Copper & Gold Inc. surged 5.2 percent to $75.70. Copper climbed to a four-month high in London. Aluminum, nickel and other metals also gained.

Exxon Mobil Corp., the world’s largest oil company, climbed 2 percent to $60.31. Chevron Corp., the second-largest U.S. energy producer, increased 3 percent to $76.28. Crude oil rebounded from its lowest level in a week as a declining dollar and rising equity markets in Europe tempered concern that U.S. fuel supplies are excessive.

Apple advanced 2.4 percent to $248.86. The company, hosting an annual event on music and media, plans to introduce an updated version of its Apple TV set-top box that will include programming from Netflix Inc., according to people familiar with the product. Netflix shares advanced 4.8 percent to $131.60.

Burger King Holdings surged 5 percent to $17.28. The fast- food chain is in talks with buyout firms about a possible sale, the Wall Street Journal reported, citing unidentified people familiar with the matter. Potential investors include 3i Group Plc, the newspaper said.

Eli Lilly gained 1.7 percent to $34.16. The world’s biggest maker of psychiatric drugs won a court order banning sales of generic versions of the attention-deficit treatment Strattera until a patent appeal is decided.

To contact the reporter on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net

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