By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market rose Tuesday -- the first day of the month and second quarter, sending the benchmark S&P 500 to intraday record level.

Investors welcomed data showing manufacturing expanded at a slightly faster pace in March as well as better-than-expected car sales figures from Ford Motors and Fiat-owned Chrysler Group.

The S&P 500 (SPX) added 8 points, or 0.4%, to 1,879.31, hitting record intraday level.

The Dow Jones Industrial Average (DJI) gained 62 points, or 0.4%, to 16,520.84.

The Nasdaq Composite (RIXF) rose 46 points, or 1.1%, to 4,245.71.

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"The ISM data were within the range of expectations, car sales were pretty good, so it is not surprising to see markets go higher. But there is another factor -- we are in the earnings sweet spot right now, and as companies start reporting in the next couple of weeks, they will start beating lowered expectations," said John Canally, economist and investment strategist at LPL Financial.

"About 94% of all the gains on the S&P 500 come during the period of 2 weeks before the earnings season and 4 weeks of actual earnings season," he added.

U.S. manufacturing companies expanded in March at a slightly faster pace compared to the prior month, a survey of executives found. The Institute for Supply Management manufacturing index edged up to 53.7%, slightly below the consensus forecasts. Any number over 50% means more companies are seeing an expansion of business instead of a contraction.

Separately, the final Markit PMI for the U.S. in March was unchanged at 55.5, down from 57.1 in February. Any reading over 50 in the purchasing managers index indicates growth.

Car sales; upgrades

Another data highlight is the auto sales figures for March, which are forecast to have increased to 15.8 million, from 15.3 million in February, after cold and snowy winter resulted in flat sales in the first two months of the year.

Chrysler Group, a unit of Fiat SpA, was the first to report, saying its March sales jumped 13% to 193,915 vehicles for its best March since 2007.

Ford Motor Company's (F) U.S. vehicle sales rose 3.3% last month, the best March in eight years. Sales turned higher mid-month, the car maker said Tuesday. Sales figures topped analysts' forecasts. Shares in Ford rose 3%.

General Motors Co. (GM.XX) is due to release sales numbers later today. Shares in the company rose 1.4%.

GM was in the news late on Monday when it said it is recalling another 1.3 million cars to fix problems with power steering that can cause a "sudden loss of electric power-steering assist." Its chief executive, Mary Barra, will be testifying before a House subcommittee later Tuesday.

Shares of Intuitive Surgical Inc.(ISRG) jumped 11%. The company said Tuesday it received clearance for its da Vinci Xi Surgical System from the U.S. Food and Drug Administration.

NVIDIA Corp. (NVDA) shares rose 3.6% after the company was upgraded to a market outperform rating from market perform with a price target of $26 on Tuesday by JMP Securities.

Hewlett-Packard Co. (HPQ) shares rose 2.3% even as the company reportedly agreed to pay $57 million to settle a lawsuit related to plans back in 2011 to refocus the business on services and products.

Apollo Education Group Inc. (APOL) is scheduled to report earnings results after the closing bell and projected to report second-quarter profit of 19 cents a share. Shares in the company were 1% higher.

In other financial markets, European stocks closed broadly higher after purchasing-manager reports confirmed the euro zone remains on a path to economic recovery. Metals prices (GCM4) were mixed, with gold prices falling and copper gaining. Crude oil (CLK4) moved lower, and the dollar index weakened (DXY). Asian markets closed mixed.

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