Phone companies, banks help market stay dialed in

Stocks ended their strongest week in almost three months.

Stocks rose Friday to wrap up their strongest week in almost three months. Banks gained ground after Federal Reserve Chair Janet Yellen said the central bank intends to keep raising interest rates provided the economy continues to improve.

Stocks turned higher over the last few hours of trading to finish at their highest levels of the day. Banks made the largest gains, as they stand to make bigger profits on lending if interest rates rise further. Phone companies traded higher after Verizon reportedly agreed in principle to a new contract with striking employees. Alphabet led technology stocks higher.

Yellen said it will be “appropriate” to raise interest rates in the next few months if the economy continues to improve, and emphasized that the Fed will move slowly and carefully. There were signs of that improvement throughout the week, including increased home sales, leading to big gains for stocks. On Friday the Commerce Department said the U.S. economy grew a bit more in the first quarter than it previously estimated. In recent months stocks have slumped when investors thought the Fed might be about to raise interest rates. That may have changed this week.

“Both inflation and growth are on an upward trend,” said Jon Adams, senior investment strategist for BMO Global Asset Management. He said investors may be worrying a bit less about the Fed’s plans because the economy could be getting onto more solid footing, but the central bank must remain careful in dealing with investor expectations.

“The Fed’s kind of walking a tight rope here,” he said.

The Dow Jones industrial average rose 44.93 points, or 0.3 percent, to 17,783.22. The Standard & Poor’s 500 index added 8.96 points, or 0.4 percent, to 2,099.06. The Nasdaq composite index picked up 31.74 points, or 0.6 percent, to 4,933.50.

Benchmark U.S. crude oil lost 15 cents to $49.33 a barrel in New York. Brent crude, which is used to price international oils, gave up 27 cents to $49.32 a barrel in London.