In first since ’07, Dow beats 14,000
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.