Industrial conglomerate Tyco International posted a 53 percent drop in quarterly net profit as soft economic conditions sapped demand for its construction and control products.

For President Barack Obama, the report that showed that the unemployment rate hit 10.2 percent last month gives opponents a chance to score some easy points.

New orders received by U.S. factories rose a stronger-than-expected 0.9 percent in September, while inventories continued to shrink, the Commerce Department said on Tuesday in a report suggesting manufacturing activity is feeding the economic recovery.

The latest reading on national factory activity from the Institute for Supply Management suggests U.S. gross domestic product is growing at an annualized rate of 4.5 percent in the fourth quarter.

China will face excess capacity as there is little demand for the output produced, said Jim Walker, founder and CEO of Asianomics.

China's manufacturing sector expanded at the fastest pace in 18 months in October as demand from both overseas and at home grew quickly, an industry survey showed on Monday, pointing to sustained strength for the sector.

Oil rose nearly 2 percent Tuesday after data showed U.S. factory orders in September expanded at a quicker pace than expected, signaling potential for more fuel demand in the world's biggest energy consumer.

The dollar and yen fell Monday as improving economic data worldwide and rising stock prices eroded the greenback's safe-haven appeal.

China's vast manufacturing sector expanded in October at the fastest rate in 18 months, a survey showed, and economists said they expected the momentum to be sustained in the coming months

The U.S. dollar recovered Friday after steep losses in the previous session as stocks failed to build on big gains following Thursday's data showing the economy grew in the third quarter.

U.S. manufacturers can't quite see the light at the end of the tunnel, but are growing more confident that they are not going to run off the rails.

There are signs the nation's factories are stirring from one of the worst recessions in decades.  If nothing else, hints of a rebound at big industrial firms will boost the stock market and lift people's 401ks.

U.S. business inventories fell by a bigger-than-expected 1.5 percent in August, the largest fall since last December, according to a government report on Wednesday that showed businesses were still slashing stocks of unsold goods to cope with weak demand.

When Bill Morgan, a retired policeman, moved into his newly built dream home in Williamsburg, Va., three years ago, his hopes were quickly dashed.

Stocks rebounded Monday as investors' waning enthusiasm got a jolt from a report that showed the services sector has begun to expand. Plus, there was some bargain hunting after the market's two-week decline.