Markets shrug off partial US government shutdown

By the Associated Press | October 1, 2013 | 12:35 PM EDT

FILE - In this Wednesday, Sept. 18, 2013, file photo, specialist Christopher Culhane works at his post on the floor of the New York Stock Exchange after the Federal Reserve announcement. Traders are shrugging off the partial shutdown of U.S. government operations on Tuesday, Oct. 1, 2013, sending stock futures higher. (AP Photo/Richard Drew)

NEW YORK (AP) — The stock market is moving higher as investors shrug off a partial shutdown of the U.S. government.

A big increase in manufacturing last month also encouraged investors.

The Dow Jones industrial average was up 71 points, or 0.5 percent, to 15,200 as of noon Tuesday.

The Standard & Poor's 500 index rose 13 points, or 0.8 percent, to 1,695. The S&P lost ground seven of the past eight trading days.

The Nasdaq composite rose 39 points, or 1 percent, to 3,810.

Merck led the Dow higher after saying it would cut 8,500 jobs and move its headquarters to save costs. Merck rose $1.13, or 2 percent, to $48.74.

Walgreen rose $2.28, or 4.3 percent, to $56.13 after the largest U.S. drugstore chain reported that its earnings soared 86 percent.