Long­est rally since May 2007

The Washington Post Sunday - - BUSINESS -

Cor­po­rate earn­ings in­spire op­ti­mism, as does Europe’s ef­forts to con­trol the debt cri­sis.

U.S. stocks rose for a sev­enth con­sec­u­tive week, the long­est rally since May 2007, buoyed by op­ti­mism about cor­po­rate earn­ings and Euro­pean ef­forts to con­trol the re­gion’s debt cri­sis.

J.P. Mor­gan Chase jumped 2.9 per­cent as the lender posted record quar­terly profit. Fi­nan­cial shares in the Stan­dard & Poor’s 500-stock in­dex climbed 3.2 per­cent af­ter Wells Fargo raised its rat­ing for large banks on prospects for higher div­i­dends. Higher oil prices boosted en­ergy shares, which climbed the most among S&P 500 groups. Mi­cron Technology, Nvidia and Novel­lus Sys­tems surged at least 12 per­cent amid op­ti­mism about semi­con­duc­tor de­mand.

The S&P 500 rose 1.7 per­cent to 1293.24 last week, the biggest gain in five weeks and its high­est level since Aug. 28, 2008. The Dow Jones in­dus­trial av­er­age added 112.62 points, or 1 per­cent, to 11,787.38.

“We have an en­vi­ron­ment that’s sup­port­ive for stocks,” said War­ren Koontz, head of U.S. large-cap value stocks at Loomis Sayles in Bos­ton, which man­ages $150 bil­lion. “We’re not go­ing into a dou­ble-dip.”

The S&P 500 ral­lied amid Euro­pean ac­tions to bol­ster the re­gion’s sov­er­eign-bailout fund and Por­tu­gal’s suc­cess­ful sale of govern­ment debt. A pos­i­tive start to the U.S. earn­ings sea­son over­shad­owed eco­nomic data show­ing ini­tial job­less claims rose.

The Trea­sury will auc­tion $29 bil­lion of three-month bills and $28 bil­lion of six-month bills on Tues­day. They yielded 0.152 per­cent and 0.183 per­cent, re­spec­tively, in when-is­sued trad­ing. The U.S. govern­ment will sell onemonth bills the next day and $13 bil­lion in 10-year Trea­sury In­fla­tion-Pro­tected Se­cu­ri­ties on Thurs­day.

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