In first since ’07, Dow beats 14,000

The Washington Post Sunday - - THE MARKETS - — Bloomberg News

U.S. stocks ral­lied for a fifth week as data show­ing im­prove­ment in the la­bor mar­ket and bet­ter-than-es­ti­mated earn­ings sent bench­mark in­dexes to­ward record highs.

Cater­pil­lar jumped 4.1 per­cent af­ter fore­cast­ing earn­ings growth in the sec­ond half as the world econ­omy im­proves. Valero En­ergy added 18 per­cent on a 20-fold profit gain. Ver­i­zon and AT&T rose 4.4 per­cent as tele­phone com­pa­nies led gains among 10 groups in the Stan­dard & Poor’s 500-stock in­dex.

The S&P 500 rose 0.7 per­cent to 1513.17 this week. The bench­mark eq­uity gauge is up 6.1 per­cent for the year. The Dow ral­lied 113.81 points, or 0.8 per­cent, to 14,009.79. The gauge closed above 14,000 for the first time since 2007 and is 1.1 per­cent be­low the all-time record it reached in Oc­to­ber 2007.

“The Jan­uary jobs data came in line with ex­pec­ta­tions, but the re­vi­sions were really the sil­ver lin­ing,” said Joseph Tan­ious, a New York-based global mar­ket strate­gist for JPMor­gan Funds, which over­sees $400 bil­lion.

The S&P 500 jumped 1 per­cent on the last trad­ing day af­ter a report showed pay­rolls rose 157,000 last month fol­low­ing a re­vised 196,000 ad­vance in the prior month and a 247,000 surge in Novem­ber. U.S. eq­ui­ties slumped ear­lier in the week as data showed the econ­omy shrank at a 0.1 per­cent an­nual rate in the fourth quar­ter, the worst per­for­mance since the sec­ond quar­ter of 2009.

The Trea­sury will sell $32 bil­lion in three-month bills and $28 bil­lion in six­month bills Mon­day. They yielded 0.08 per­cent and 0.12 per­cent, in when-is­sued trad­ing. The Trea­sury will also sell $25 bil­lion in 52-week bills Tues­day. They yielded 0.14 per­cent.

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