Banks and energy firms boost stocks

U.S. stocks rose in abbreviated trading Monday as banks continued to climb along with interest rates, and energy companies rallied again with oil prices. Better-than-expected auto sales and a strong report on U.S. factories also boosted stocks.

Energy companies made large gains as oil prices rose for the eighth day in a row. Banks rose as bond yields and interest rates continued to rise. Companies that stand to benefit from faster economic growth, like industrial companies and basic materials makers, climbed after the Institute for Supply Management said U.S. manufacturing activity rose in June to its highest level in almost three years.

“The market clearly liked that number,” said Scott Wren, senior global equity strategist for Wells Fargo Investment Institute. He said economic reports over the last few months have been a bit disappointing, but “it’s still in line with expectations for modest GDP growth.”

The Standard & Poor’s 500 index added 5.61 points, or 0.2%, to 2,429.02. The Dow Jones industrial average rose 129.64 points, or 0.6%, to 21,479.27. The Russell 2000 index of smaller-company stocks added 11.32 points, or 0.8%, to finish at a record high of 1,426.68.

The Nasdaq composite lost 30.36 points, or 0.5%, to 6,110.06. That was a six-week low, as technology companies have been slumping for almost a month.

Banks continued their recent winning ways as bond yields and interest rates increased further. Higher interest rates let banks make more money from lending. Major banks also raised their dividends and said they will buy back more stock. JPMorgan Chase added $1.85, or 2%, to $92.75 and Citigroup rose $1.38, or 2.1%, to $68.26. Morgan Stanley climbed $1.05, or 2.4%, to $45.61.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.34% from 2.30%.

U.S. factories did more work in June, according to the Institute for Supply Management. The group’s survey of manufacturing reached its highest level since August 2014. General Electric rose 44 cents, or 1.6%, to $27.45 and chemicals maker DuPont added $1.42, or 1.8%, to $82.13.

Benchmark U.S. crude gained 73 cents, or 1.6%, to $46.77 a barrel. Brent crude, used to price international oils, rose 62 cents, or 1.3%, to $49.39 a barrel. Exxon Mobil rose $1.37, or 1.7%, to $82.10 and ConocoPhillips added $1.70, or 3.9%, to $45.66.

Car companies reported their monthly sales Monday. Ford and GM said their sales each fell about 5%, but Ford gained 37 cents, or 3.3%, to $11.56 and GM rose 64 cents, or 1.8%, to $35.57. Fiat Chrysler advanced 44 cents, or 4.1%, to $11.07 despite a 7% decline in its sales.