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* Obama to seek congressional authorization for Syria action
* Verizon and Microsoft fall after announcing major deals
* ISM Manufacturing index comes in ahead of expectations
* Indexes up: Dow 0.7 pct, S&P 1 pct, Nasdaq 1.2 pct
By Ryan Vlastelica
NEW YORK, Sept 3 (Reuters) - U.S. stocks surged on Tuesdayafter U.S. President Barack Obama opted to seek congressionalauthorization for military action against Syria, a move that waslikely to delay any strike for at least several days.
Market gains were broad, though a pair ofmulti-billion-dollar deals involving Dow components limited theblue chip index's gains.
Equities have recently been pressured by the prospect of aWestern strike against Syria after chemical weapons were used tokill civilians. The geopolitical uncertainty contributed tosteep losses in August, the worst month for the S&P 500 sinceMay 2012.
Congress returns from its summer recess on Sept. 9, and anyvote to authorize a strike will come after that. While Obama hasbeen pushing Congress to back his plan, passage is by no meanscertain, further easing concerns over an imminent strike.
"Going to Congress creates more certainty about theengagement protocol, and there seems to be a more cohesiveapproach as to how the government will proceed. That's very goodfor markets," said Steven Baffico, chief executive officer atFour Wood Capital Partners in New York.
U.S. crude futures dipped 0.2 percent. Oil spiked 2.5percent in August, largely driven by concerns that militaryaction in the Middle East would impact crude supplies.
The Dow Jones industrial average was up 97.58 points,or 0.66 percent, at 14,907.89. The Standard & Poor's 500 Index was up 16.10 points, or 0.99 percent, at 1,649.07. TheNasdaq Composite Index was up 42.29 points, or 1.18percent, at 3,632.16.
Gains were broad, with more than 70 percent of stocks onboth the New York Stock Exchange and Nasdaq trading higher.However, gains were slightly limited in the Dow with Verizon andMicrosoft lower after announcing major deals.
Verizon Communications agreed on Monday to pay $130billion to buy Vodafone Group out of its U.S.wireless business, bringing an end to an often tense 14-yearmarriage. Verizon sank 4.8 percent to $45.10 while U.S. sharesof Vodafone lost 1.5 percent to $31.87.
Nokia Corp agreed to sell its handset business toMicrosoft Corp for $7.2 billion, sending its U.S.shares up 38 percent to $5.39. Microsoft fell 4.6 percent to$31.86.
"It would be very difficult to get these deals done withouta healthy capital market, so these deals are very positive forinvestors to see," said Baffico.
In the latest economic data, the Institute for SupplyManagement's August manufacturing index came in at 55.7, aboveexpectations for a reading of 54. July construction spendingrose 0.6 percent, twice the rate that had been expected.
The U.S. stock market was closed on Monday for Labor Day andtrading volume could continue its recent trend of being lightwith many traders away for the holiday.
In the S&P, investors will be watching the 100-day movingaverage at 1,639.42, which the index has been unable to closeabove since Aug. 26. Holding over that level would be a positivesign of near-term momentum.
CBS Corp on Monday reached an agreement with TimeWarner Cable Inc to end a month-long blackout of itsstations in New York, Los Angeles and Dallas. Financial terms ofthe deal were not disclosed. Shares of CBS rose 4 percent to$53.14 while Time Warner Cable added 1.7 percent to $109.19.
