U.S. stocks rose for the week as signs of economic growth and central bank support combined to power the Dow Jones industrial average over 17,000 for the first time.
About $216 billion was added to U.S. equities last week as job creation surged beyond expectations in June while U.S. and European central banks repeated vows to support growth. The Dow rose 216.42 points, or 1.3 percent, to 17,068.26 for the holiday-shortened week. The Standard & Poor’s 500-stock index climbed 1.3 percent to a record 1985.44.
The Dow record is “a nice round number,” said Philip Orlando, the equity-market strategist at Federated Investors. He helps oversee $400 billion. “We have a terrific jobs number. If folks finally understand that the great recession is behind us, maybe they’ll crawl out of their beds and take their money out of bonds and put it into stocks.”
Equities rallied as data showed job growth blew past expectations and the jobless rate fell to the lowest level since before the financial crisis peaked six years ago.
European Central Bank President Mario Draghi reiterated that he’ll keep interest rates low as officials try to revive the region’s economy with a new round of emergency measures.
Fed Chair Janet Yellen said last week that concerns about financial stability shouldn’t prompt a change in current policy.
The Treasury will sell $25 billion of three-month bills and $23 billion of six-month bills Monday. They yielded 0.030 percent and 0.06 percent in when-issued trading. The Treasury will sell $27 billion of three-year notes as well as four-week bills Tuesday. It will sell $21 billion of 10-year notes Wednesday and $13 billion of 30-year bonds Thursday.