(Reuters) - The U.S. manufacturing sector grew at its fastest rate since May 2004 in February, while prices paid also rose, according to an industry report released on Tuesday. The Institute for Supply Management (ISM) said its index of national factory activity rose to 61.4 in February from 60.8 in January, topping forecasts for 61.0. It was the highest level since May 2004.

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(Reuters) - American Airlines parent AMR Corp (AMR.N) said passenger unit revenue rose about 4.5 percent to 5 percent in the first two months of this year compared with a year before. The company said in a federal filing on Tuesday that the revenue results reflect capacity increases by rivals during the first quarter and relatively strong growth last year that made for a more challenging comparison for 2011.

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(Reuters) - U.S. construction spending fell more than expected in January to its lowest level in five months, a government report showed on Tuesday, pulled down by weak private construction outlays. The Commerce Department said construction spending fell 0.7 percent to an annual rate of $791.82 billion, the lowest since August. December's spending was revised to show a smaller 1.6 percent drop than the previously reported 2.5 percent decline.

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(Reuters) - February sales numbers that top U.S. chains report later this week will be the first sign of shoppers' ability and willingness to pay more for clothing and household items now that gas prices are rising. More than two dozen U.S. store chains, from high end department stores Nordstrom Inc and Saks Inc to discounters Target Corp and Costco Wholesale Corp will report February sales on Wednesday and Thursday.

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(Reuters) - Insurers must stop setting prices based on gender, an EU court ruled, in a move that could raise costs for women drivers, cut male pensions, and prompt more legal challenges to insurance pricing practices. "Taking the gender of the insured individual into account as a risk factor in insurance contracts constitutes discrimination," the European Court of Justice said on Tuesday.

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(Reuters) - Morgan Stanley experienced a "very sensitive" break-in to its network by the same China-based hackers who attacked Google Inc's computers more than a year ago, Bloomberg reported, citing leaked emails from an Internet security company. The emails from the Sacramento, California-based computer security firm HBGary Inc said that Morgan Stanley -- the first financial institution identified in the series of attacks -- considered details of the intrusion a closely guarded secret, the report said.

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(Reuters) - Stocks rose on Monday after bullish comments from a Federal Reserve official eased concerns that high oil prices could hurt economic activity. Also helping equities, billionaire investor Warren Buffett, chairman of Berkshire Hathaway Inc (BRKa.N), said in his widely read annual letter the conglomerate was looking to make "major acquisitions," a sign stocks may be cheap. Berkshire's Class B (BRKb.N) shares rose 1.9 percent to $86.50.

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(Reuters) - Consumer spending rose modestly in January, getting the year off to a soft start, as households took advantage of tax cuts to rebuild their savings. Other data on Monday painted a bullish picture of the manufacturing sector, with a gauge of factory activity in the country's Midwest hitting a 22-1/2 year high this month, which should help the economy weather rising oil prices and maintain its steady growth momentum.

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(Reuters) - Private equity firm Blackstone Group LP (BX.N) has struck a deal to buy nearly 600 U.S. shopping malls and other properties from Australia's Centro Property Group (CNP.AX) for about $9.4 billion, a person with direct knowledge of the transaction said on Monday. Blackstone beat rival bidders that include Morgan Stanley Real Estate (MS.N), which had teamed up with Starwood Capital Group, and New York-based NRDC, according to the person, who was not authorized to talk to the media and did not want to be identified.

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(Reuters) - HSBC (HSBA.L) cut its profitability targets due to the cost of tougher banking regulations and plans to cut costs and overhaul other areas after its annual profits fell short of expectations. Europe's biggest bank said 2010 pretax profit more than doubled from 2009 to $19 billion, but that fell short of the average forecast of $20 billion, according to analysts polled by Reuters Estimates.

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