U.S. stocks rise for second straight week
U.S. stocks rose last week, capping the market's biggest two-week rally since November, after New York area manufacturing expanded and Europe's efforts to contain its debt crisis bolstered confidence in the global economy.
Caterpillar and United Technologies each advanced at least 4.5 percent. Apple jumped 8.1 percent on optimism about the new version of its iPhone. Intel climbed 3.7 percent to pace gains in semiconductor stocks after Taiwan Semiconductor Manufacturing, the world's largest contract maker of chips, boosted its market forecast.
The S&P 500-stock index rose 2.4 percent to 1,117.51, adding to the previous week's 2.5 percent advance. The Dow Jones industrial average advanced 239.57 points, or 2.4 percent, to 10,450.64.
Both measures erased losses for the year.
"The recovery is on track," said Philip Orlando, the chief equity market strategist at Federated Investors. "Investors are now thinking that the global pressures will not be sufficient to derail the economic rebound. The stock market was significantly undervalued. The trend is higher."
The S&P 500 has rebounded 6.4 percent from a seven-month low on June 7 amid speculation the economic rebound will continue. After reaching a 19-month high in April, the index lost value on concern about widening budget deficits in Europe.
The Treasury will sell $27 billion in three-month and six- month bills Monday. They yielded 0.10 percent and 0.17 percent, respectively, in when-issued trading. The government will sell $40 billion in two-year notes Tuesday, $38 billion in five-year notes Wednesday and $30 billion in seven-year notes Thursday. They yielded 0.74 percent, 2.05 percent and 2.68 percent in when-issued trading.
-- Bloomberg News