Shares of industrial and transportation companies rose as strong economic data spurred investors to rotate out of richly valued sectors such as technology and biotechnology into beaten-down industrial companies.

The U.S. producer-price index, a measure of the prices businesses receive for their goods and services, rose a seasonally adjusted 0.6% in July, the largest monthly rise since October 2018, indicating a rebound in demand at the wholesale level. The speed and degree of the economic contraction and recovery in 2020 is almost unprecedented, according to one strategist.

"Essentially, based on changes in GDP, the economy has experienced a depression followed by an instant war-time economic boom!" said Jim Paulsen, chief investment strategist at money manager The Leuthold Group.

HD Supply Holdings agreed to sell its construction and industrial business, known as White Cap, to private-equity firm Clayton Dubilier & Rice for $2.9 billion in cash. 


 Write to Rob Curran at rob.curran@dowjones.com