Shares of industrial and transportation companies were higher amid strong data.
The U.S. manufacturing sector's activity expanded in December at the quickest rate since August 2018, data from a survey compiled by the Institute for Supply Management showed Tuesday.
The ISM Manufacturing Report on Business PMI for December was 60.7, up from 57.5 in November. The reading beat expectations from economists polled by The Wall Street Journal, who predicted the PMI to decline slightly to 57.0.
The indicator signals the manufacturing economy continued its recovery in December, ISM said, with four of five subindexes in strong growth territory.
However, the World Bank warned of a potential "lost decade" ahead for the global economy as it cut its forecasts for the coming year. The bank's semiannual Global Economic Prospects report projected potential global growth between 2020 and 2029 will average 1.9% a year, down from its previous forecast of 2.1% and the previous decade's 2.5% pace.
In corporate news, General Electric's board won't claw back compensation from former CEO Jeff Immelt and other executives over GE's accounting issues or Mr. Immelt's use of a backup corporate jet, ending a three-year probe into allegations of misconduct at the conglomerate.
The investigation didn't find evidence to support shareholders' claims of fraud and abuse, and pursuing litigation against former leaders wasn't in the company's interest, according to the law firm that GE's board hired to run the process.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-05-21 1712ET
