NEW YORK (AP) — Stocks are snapping back from Friday's big losses as stronger-than-expected reports on manufacturing and housing ease investors' concerns about how durable the economic recovery will be.

Major indexes rose more than 1 percent in midday trading Monday, including the Dow Jones industrials, which jumped about 115 points, erasing a chunk of Friday's 250-point loss.

The gains came after the Institute for Supply Management said the manufacturing industry grew at the fastest pace in October since April 2006. The ISM manufacturing index clocked in at 55.7, much better than the 53 economists had expected. It was the third month in a row the index came in above 50, which indicates growth.

Meanwhile, the National Association of Realtors said pending home sales increased for the eighth straight month in September. The index rose 6.1 percent from August to 110.1. It was the highest reading since December 2006 and more than 21 percent above a year ago. Economists had expected the index would be level at 103.8.

Also Monday, the Commerce Department said construction spending increased 0.8 percent in September, matching the gain in August. Economists had been expecting a 0.3 percent decline.

"This should help relieve some of the fears that the recovery is not sustainable," said Peter Cardillo, chief market economist Avalon Partners Inc. of the reports.

The major indexes had been up modestly prior to the reports, getting a boost from a surprise profit from Ford Motor Co. Ford said deep cost cuts and the government's Cash for Clunkers rebates helped it earn nearly $1 billion in the third quarter. Shares soared more than 9 percent in early trading.

The Dow Jones industrial average rose 115.55, or 1.2 percent, to 9,828.28. The Standard & Poor's 500 index rose 11.62, or 1.1 percent, at 1,047.81, and the Nasdaq composite index rose 16.72, or 0.8 percent, to 2,061.83.

Stocks are coming off a volatile week, having posted their biggest losses in four months on Friday after rising sharply a day earlier on stronger-than-expected economic growth in the third quarter. Friday's losses helped send the Standard & Poor's 500 index into the red for the month of October, breaking a seven-month streak of gains.