Stocks rose Tuesday on the belief that the crisis over debt in Dubai will be mostly contained in the region and key manufacturing data that encouraged investors. Financial-services exchange-traded funds lagged a bit, but most others rose with the broad rally.

The Dow Jones Industrial Average jumped 127 points to 10472. The Nasdaq rose 31 to 2176, and the S&P 500 ended up 13 at 1109.

The rally picked up after U.S. stocks had finished higher on Monday, helped by gains from financial firms, even as retailers struggled in the aftermath of Black Friday.

Though the government of Dubai remained steadfast in its refusal to back Dubai World -- and stocks in the region slumped 5.6% on Tuesday -- a range of assets reflected diminished concerns about the fallout.

Gold futures hit record highs, oil futures advanced, and the dollar index fell 0.5%. The dollar tends to fall when investors are more willing to take on risk.

"Investor concerns about the impact of the Dubai World request for a standstill will probably ease over the next few days, as the company said that it seeks to restructure only $26 billion of debt, less than half of the company's $59 billion of obligations," said Philip Gisdakis, a strategist at UniCredit.

Tuesday's calendar featured the Institute for Supply Management's manufacturing index for November. The index came in at 53.6. Economists polled by MarketWatch expect the reading to slip to 55% from 55.7%, though a strong reading from a Chicago-area gauge may hint at an improvement.

Pending home sales rose 3.7% in October, according to the National Association of Realtors. Earlier estimates predicted a 0.1% drop. It's the highest year-over-year increase in the group's history.

Construction spending remained flat for October, the Commerce Department reported.

For a detailed rundown on Tuesday s trading session see our market story.

Winners

Big jumps in gold prices pushed up the Market Vectors Junior Gold Miners fund 5.0%. The iShares MSCI Japan Index fund popped 3.6% after a Bank of Japan emergency meeting prompted a decision by the central bank to lend 10 trillion yen in three-month funds.

Losers

The big upward swing at midday knocked back the iPath Exchange Traded Notes S&P 500 VIX Short-Term Futures Index fund, dropping shares 3.7%. Shorting was the wrong side of today's trade, as the Short S&P 500 ProShares fund dropped 1.2%.

Tuesday s Industry Headlines

Launching Pad
Van Eck Global Advisors launched the Market Vectors Poland fund, giving investors direct access to small-, mid- and large cap companies in the world's 18th-largest economy. It tracks the Market Vectors Poland Index, a diversified index consisting of at least 25 companies either headquartered in Poland or deriving at least 50% of their revenues from the country. It charges an expense ratio of 0.76%.

Pimco launched the Pimco Intermediate Municipal Bond Strategy Fund, an actively managed exchange-traded fund. The fund invests in AMT-free muni bonds of intermediate maturity. The fund charges an expense ratio of 0.35%, and follows the November launch of the Pimco Enhanced Short Maturity Strategy Fund.

Wednesday s Notebook

Earnings and Conference Calls
Aeropostale, Alloy, American Technology, Cascade, Casella Waste Systems, Chaming Shoppes, Collective Brands, Dynamex, G-III Apparel, Jo-Ann Stores, SeaChange International, Sigma Designs, Synopsys, Synovis Life Technologies, The Descartes Systems Group, The Pantry

Economic Data
7:30 a.m. Challenger Job Cuts (Nov.)
8: 15 a.m. ADP Employment Report (Nov.)
10:30 a.m. Crude Inventories (Week of 11/27)
2:00 p.m. Fed Beige Book