NEW YORK (AFP) –
Wall Street revved higher in morning trade Monday after a surprise profit reported by Ford Motor Co. and a strong factory sector report helped the market rebound from last week's drubbing.

The Dow Jones Industrial Average climbed 119.11 points (1.23 percent) to 9,831.84 at 1550 GMT, coming off a 2.6 percent slide in last week's action for the blue-chip index.

The Nasdaq composite rose 16.97 points (0.83 percent) to 2,062.08 and the broad-market Standard & Poor's 500 index added 12.48 points (1.20 percent) to 1,048.67.

Market sentiment was helped by news ahead of the bell of Ford's third-quarter profit of 997 million dollars on improvement in its North American business, and comments that it was on track to become "solidly profitable."

Douglas McIntyre at 24/7 Wall Street called the earnings at the number two automaker "a little miracle."

"Almost no one thought Ford could make money in North America -- except Ford," he said.

Gains accelerated after the Institute of Supply Management said its purchasing managers index of the factory sector rose to a stronger-than-expected 55.7 percent, suggesting stronger growth in manufacturing.

"The October ISM suggests the fourth quarter got off to a better than anticipated start," said Ryan Sweet at Moody's Economy.com.

Among the sub-indexes in the ISM survey, the employment index was 53.1 percent, marking a sharp turnaround from last month's level of 46.2 percent and suggesting that factories are starting to add jobs.

Patrick O'Hare at Briefing.com said the market remains in a correction phase after a strong rally of over 60 percent from lows in March.

"It is clear now that the recovery rally has run into a wall of high expectations," he said.

"Participants aren't seeing the broader market respond the way they have grown accustomed to seeing it respond to better-than-feared news."

Among key stocks, Ford powered higher by 8.39 percent to 7.58 dollars after its results surprised analysts expecting another loss from the auto giant.

Clorox Co. added 1.01 percent to 59.83 after the maker of bleach and cleaning products reported better-than-expected earnings in the past quarter.

Meanwhile business lender CIT plunged 64 percent to 25 cents after its weekend announcement of a bankruptcy filing.

Bonds slipped. The yield on the 10-year US Treasury bond increased to 3.426 percent from 3.392 percent Friday and that on the 30-year bond rose to 4.269 percent from 4.236 percent. Bond yields and prices move in opposite directions.