S& P Hits 11-Month High on Oil Forecasts
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The Standard & Poor's 500-stock index posted its biggest weekly gain since July as rising forecasts for oil demand boosted energy companies and Goldman Sachs Group's recommendation lifted industrial companies.
The S&P 500 climbed to an 11-month high Thursday before retreating in the week's final session on concern the rally has outpaced prospects for earnings. Schlumberger and Halliburton gained more than 6.3 percent for the week as oil climbed above $72 a barrel and the dollar fell. General Electric rallied after Goldman Sachs said multi-industry companies tend to outperform when manufacturing growth returns.
The S&P 500 rose 2.6 percent, to 1042.73, and climbed for five sessions through Thursday, the longest streak of gains since November. The Dow Jones industrial average increased 164.14 points, or 1.7 percent, to 9605.41. The Nasdaq composite index added 3.1 percent, to 2080.90. Markets were closed Monday for the Labor Day holiday.
"There are more signs globally that the recovery is going on," said Linda Duessel, who helps oversee $402 billion at Federated Investors. "Things are getting moderately better. We could be early in the new bull market."
The S&P 500 has surged 54 percent from a 12-year low March 9 as economic reports from U.S. home sales to manufacturing in China signaled the global recession is ending.
The yield on the benchmark 10-year Treasury note dropped for a fifth week, sliding 0.09 percentage points to 3.35 percent, after the relative value of U.S. government debt helped fuel demand at auctions of $70 billion in bonds and notes the last three days.
The government will auction $29 billion of three-month bills and $29 billion of six-month bills Monday. They yielded 0.13 percent and 0.22 percent in when-issued trading. The Treasury will sell one-month bills the next day.
-- Bloomberg News
