NEW YORK (CNN/Money) - Stocks continued higher in early trading Wednesday despite weaker-than-expected readings on manufacturing activity and construction spending, starting fresh after closing out a weak September in the previous session.

Just after 10 a.m. ET, the Nasdaq composite (up 22.35 to 1809.29, Charts) led the major indexes in gains, rising more than 1 percent. The Dow Jones industrial average (up 78.96 to 9354.02, Charts) and the Standard & Poor's 500 (up 8.30 to 1004.27, Charts) also moved modestly higher. The major indexes fell Tuesday, and closed out the month with losses. But all three claimed gains for the third quarter.

During early trading, the Institute for Supply Management said its September index of manufacturing activity slipped to 53.7 from 54.7 in August. Economists had expected the index to rise to 55, according to a consensus of economists surveyed by Briefing.com. Any reading over 50 is considered a sign of growth in the sector.

Separately, the Commerce Dept. said construction spending rose 0.2 percent in August, in line with the prior month but a smaller increase than the 0.4 percent rise expected by economists, on average.

Investors also awaited reports on September car sales, due later in the day. The annual sales rate for cars is expected to decline to 6 million from 6.1 million in August, while the truck sales rate is seen sliding to 7.9 million from 9.3 million.

Ford Motor (F: up $0.06 to $10.83, Research, Estimates) and DaimlerChrysler (DCX: up $0.06 to $35.12, Research, Estimates) said they plan to cut thousands of jobs in the wake of recent labor agreements. Shares of both automakers headed lower.

Some other corporate news also garnered attention at the open.

Dow stock Exxon Mobil (XOM: up $0.26 to $36.86, Research, Estimates) rose about 1 percent despite reports that the company may have to pay an additional $100 million in costs related to the 1989 oil spill in Alaska from its tanker Exxon Valdez.

Morgan Stanley (MWD: up $0.57 to $51.03, Research, Estimates) jumped 1 percent on reports that it has fired dozens of its employees, including money managers, as a means of improving investment performance.

Stocks in Europe mostly headed higher in late-day trading there. Asian stocks ended mixed Wednesday.

Treasury prices tipped lower, with the 10-year note dipping 11/32 of a point to yield 3.98 percent, up from 3.94 percent late Tuesday. The dollar sank against the euro and the yen.

Brent oil futures fell 6 cents to $27.19 a barrel in London. COMEX gold lost 10 cents to $386 an ounce in New York.