Stocks gain as jobs, consumer spending rise
NEW YORK — Good news on jobs and consumer spending pushed stocks higher again on Thursday.
The Dow Jones industrial average and the Standard & Poor's 500 index rose for a third straight day. Yields on Treasury securities fell for a second day, easing worries that a sudden spike in interest rates could hurt the economy.
Consumer spending rose 0.3 percent last month and incomes increased 0.5 percent, the most in three months, the government reported. The number of Americans seeking unemployment benefits fell 9,000 to 346,000 last week.
Stocks have rallied this week as investors took advantage of lower prices after a sell-off last week that erased 560 points from the Dow over Wednesday and Thursday.
Even with the gains this week, the index is still 293 points below where it was June 18, the day before the Federal Reserve laid out its plans for how it might wind down its stimulus.
The central bank is buying $85 billion in bonds every month to hold down long-term interest rates and encourage borrowing and spending. Fed stimulus has underpinned a stock market rally that started in March 2009 by encouraging investors to put money into risky assets.
“What's driving that market up is that people are realizing that they are in a ‘win-win' situation,” said Rick Robinson, a regional Chief Investment Officer at Wells Fargo Private Bank. “If you have good economic data, that should be good for stocks. If you have poor economic data, ... that means the Fed will probably have its (stimulus) longer.”
The Dow closed up 114.35 points, or 0.8 percent, to 15,024.49. The S&P 500 index climbed 9.94 points, or 0.6 percent, to 1,613.20.
Nine of the 10 industry groups in the S&P 500 rose, led by financial stocks. Banks and insurers listed in the S&P 500 have gained 4 percent in the last three days. Materials companies were the only group that fell.
The Nasdaq composite rose 25.64 points, or 0.8 percent, to 3,401.86.
In a sign that investors were once again more confident in holding riskier assets, the Russell 2000 index of small-company stocks rose 16.09 points, or 1.7 percent, to 979.92, more than twice as much as other major indexes.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Rising number of health care workers have less than 4-year degree, study shows
- Latrobe’s Ci Medical Technologies transforms to medical device business
- EQT posts $110.9 million profit in latest quarter
- Sluggish growth elsewhere could infect healthy U.S. economy
- Health insurers will refund $5.2M to Pa. subscribers, group plans
- Jobless rate unchanged as Pennsylvanians gave up search for work
- Feds eye Western Pa. ties in Katrina investigation
- Wesco posts higher profit, lowers full year outlook
- Dick’s cuts PGA professionals as golf business declines
- 1,600 StubHub accounts breached, N.Y. official says
- Wabtec 2Q profit jumps 18.9%; raises forecast for year