Ford Motor Co posted a $1 billion quarterly profit on Monday, defying Wall Street forecasts of a loss, as it cut costs and gained market share, leading it to raise its 2011 outlook to “solidly profitable” from break-even.

Hopes for the fledgling economic recovery got a boost Monday from better-than-expected news on manufacturing, construction and contracts to buy homes.

U.S. stocks rose on Monday after another round of solid economic reports but pulled off session highs after a Federal Reserve official’s warning about banks’ loan losses.

The following stocks were among those that moved substantially or traded heavily Monday on the New York Stock Exchange: NYSE:

Major business events and economic events scheduled for Tuesday: DETROIT — Major automakers report U.S. auto sales for October.

Domtar Corp. rose Monday after an analyst upgraded shares of the paper and wood products maker on prospects that strong free cash flow will aid debt reduction and lead to a big payback for stockholders.

YRC Worldwide Inc. shares plunged more than 50 percent Monday after the struggling trucking company said it is launching a debt exchange offer that could drastically reduce current shareholders’ stakes.

Airline shares rose modestly on Monday, benefiting from an analyst’s upgrades of Continental, AirTran, and United parent UAL Corp., along with oil prices that hovered around $77 a barrel.

Motorola Corp. shares gained Monday and BlackBerry maker Research in Motion Ltd. declined after Citi Investments Research predicted that Motorola and others could break the BlackBerry’s grip on the corporate cell phone market.

European and U.S. stock markets rose Monday after a much better than anticipated U.S. manufacturing survey helped ease concerns that the recovery in the world’s largest economy was faltering.