Stocks power to fresh records
U.S. stocks climbed for the fourth week as financial companies rallied, economic data beat expectations and corporate earnings continued to show profit growth.
Banks posted their biggest five-day gain this year as the 10-year yield climbed and Federal Reserve chair Janet L. Yellen told Congress more interest-rate increases would be appropriate if the economy stays on course.
The Standard & Poor’s 500-stock index added 1.5 percent to a record 2,351.16. The Dow Jones industrial average jumped 1.7 percent to 20,624.05. The Nasdaq Composite Index ended the week at an all-time high as health-care and phone stocks rallied.
Stephen Auth, the chief investment officer of equities at Federated Investors, said that while the rally is “starting to feel overextended,” the firm’s “fundamental bullish view” is unchanged. “The Trump revolution has changed market psychology,” he wrote in a research note Friday. Financial companies have been critical to the rally, as investor focus turns to the prospect of tax cuts.
The U.S. Treasury will sell $34 billion in three-month bills and $28 billion in sixmonth bills Tuesday. They yielded 0.52 percent and 0.66 percent in when-issued trading. It will also sell $35 billion in four-week bills and $26 billion in two-year notes. On Wednesday and Thursday, it will sell $34 billion in five-year notes and $28 billion in seven-year notes, respectively.
Editor’s note: Going forward, our weekly composite stock listing highlights companies based in Washington or with a strong presence here. The rest of the table shows firms as ranked by market capitalization. And we’ve added year-to-date data because readers told us it would be useful.