Dow Climbs Into the Black for the Year
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U.S. stocks rose last week, erasing the Dow Jones industrial average's year-to-date loss after oil's climb above $72 a barrel drove a group of energy stocks to a seven-month high.
Schlumberger and Halliburton each gained more than 5 percent as oil rallied. FedEx lost 4.8 percent and United Airlines parent UAL plunged 24 percent on concern that higher fuel costs may reduce earnings. Bank of America climbed 16 percent after analysts at Morgan Stanley and Stifel Financial raised their profit estimates.
The Dow climbed for a fourth week, gaining 36.13 points, or 0.4 percent, to 8799.26. The Standard & Poor's 500-stock index added 0.7 percent, to 946.21. The Nasdaq composite index rose 0.5 percent, to 1858.80.
"We're still relatively optimistic toward the equity market," said Marc Harris, co-head of global research at RBC Capital Markets in New York. "In the short term, we may be stalled out, but we're starting see the right kind of recovery."
The Dow, now up 0.3 percent for 2009, became the last major U.S. stock gauge to turn positive. Stocks were also boosted by better-than-estimated jobless claims and consumer confidence.
Yields on 10-year Treasurys reached 4 percent on June 11, the highest since October, on concern that surging budget deficits and a falling dollar will prompt investors to reduce debt holdings as issuance climbs to a record.
J.P. Morgan Chase, BB&T and Bank of New York Mellon rose more than 1.6 percent each after the Treasury let them and seven other firms repay $68 billion of rescue funds.
The Treasury, which sold $65 billion of notes last week, will auction $31 billion in three-month bills and $30 billion in six-month bills tomorrow. They yielded 0.16 percent and 0.29 percent, respectively, in when-issued trading. The Treasury will sell one-month bills Tuesday.
-- Bloomberg News
