Dow closes at a 4-year high (ext)

NEW YORK (CNNMoney) -- U.S. stocks moved solidly higher Tuesday as investors welcomed a rise in U.S. manufacturing activity and a mixed batch of corporate earnings

The Dow Jones industrial average (INDU) rose 66 points, or 0.5%, to close at 13,279.40, the highest since December 2007.

The S&P 500 (SPX) added 8 points, or 0.6%, and is just a handful of points shy of a 2012 high. The tech-heavy Nasdaq (COMP) increased 4 points, or 0.1%.

The day's gains were broad, with more than 70% of the Dow's 30 components ending in positive territory.

Countering signs that the U.S. economic recovery may be slowing, investors were encouraged by a report that showed manufacturing activity grew last month at the fastest pace since June 2011.

"This comes as a big surprise, because activity in the New York, Philadelphia and Chicago regions slowed materially last month," said Katy Lien, director of research and analysis at Global Forex Trading. "The details of the report showed strength in new orders, production, new export orders, employment, supplier deliveries and customer inventories."

Meanwhile, manufacturing in China continued to recover for the fifth straight month, helping allay concerns about the economy slowing too quickly.

Fears about a so-called hard landing in China, a stalled U.S. recovery and a flare-up in Europe's debt crisis have been weighing on investors, and were the main reasons for the stock market's loss of momentum in April.

The dollar gained ground against the euro, the British pound and Japanese yen.

Oil for June delivery rose $1.29 to settle at $106.16 a barrel.

Gold futures for June delivery fell $1.80 to settle at $1,662.40 an ounce.