NEW YORK (AP) – Stocks jumped Wednesday, sending the Dow Jones industrials past 13,200 for the first time after a strong reading on American factory orders stoked investor optimism about the economy.

The Commerce Department said orders to U.S. factories jumped 3.1 percent in March – the largest increase in a year – amid strong demand for commercial aircraft and a sharp rise in an indicator of how much companies are investing in their business. The increase easily outpaced the 2 percent rise analysts had been expecting.

As investors begin to look toward Friday’s Labor Department reports on nonfarm payrolls and unemployment, they are also keeping watch over corporate profits as they try to determine how quickly the economy might be slowing and whether the stronger-than-expected earnings might continue to give stocks a lift.

Yum Brands Inc., parent of fast-food chains KFC, Taco Bell and Pizza Hut, reported a 14 percent increase in first-quarter earnings as its international operations turned in a tidy profit.

In midmorning trading, the Dow rose 61.43, or 0.47 percent, to 13,197.57. The blue chip index hit a fresh trading high of 13,205.62 after reaching 13,184.14 Tuesday. The Dow has set 16 record closes this year and 38 since the beginning of October; the latest closing high came Tuesday.

Broader stock indicators rose Wednesday. The Standard & Poor’s 500 index advanced 7.39, or 0.50 percent, to 1,493.69, and the Nasdaq composite index rose 17.21, or 0.68 percent, to 2,548.74.

Bonds fell following the factory order data. The yield on the benchmark 10-year Treasury note rose to 4.65 from 4.64 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude fell 35 cents to $64.05 per barrel on the New York Mercantile Exchange.

In perhaps an early read on Friday’s jobs numbers, an employment indicator published by ADP and Macroeconomic Advisers reported an increase of 64,000 in private jobs in April.

On Tuesday, a takeover bid launched by News Corp. for Wall Street Journal parent Dow Jones & Co. buoyed investor sentiment and help send stocks higher. Dow Jones fell $1.30, or 2.3 percent, to $54.87 after jumping 55 percent Tuesday, while News Corp. on Wednesday advanced 49 cents, or 2.1 percent, to $23.48.

In other corporate news, Yum Brands rose $3.92, or 6.2 percent, to $67.04 after its earnings report.

Cablevision Systems Corp. jumped $2.68, or 8.2 percent, to $35.35 after the cable TV provider and owner of New York’s Madison Square Garden, said it struck a $10.3 billion deal to be taken by its controlling shareholders, the Dolan family. The family had tried three other times to take the company private.

Time Warner Inc. said its first-quarter earnings fell 18 percent. The media conglomerate topped Wall Street’s expectations, however, as growth in its cable business helped boost revenue. Time Warner rose 45 cents, or 2.1 percent, to $21.04.

Advancing issues outnumbered decliners by 3 to 1 on the New York Stock Exchange, where volume came to 306.1 million shares.

The Russell 2000 index of smaller companies rose 7.29, or 0.89 percent, to 823.54.

Overseas, Japan’s Nikkei stock average closed up 0.69 percent. Britain’s FTSE 100 rose 0.67 percent, Germany’s DAX index advanced 0.41 percent, and France’s CAC-40 rose 0.39 percent.

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