Wall Street shot higher Thursday as investors, while anticipating another dismal jobs report today, viewed the rising dollar and falling...
NEW YORK — Wall Street shot higher Thursday as investors, while anticipating another dismal jobs report today, viewed the rising dollar and falling oil prices as promising for the economy.
The Dow Jones industrial average rose 189.87 to 13,010.00, after briefly rising more than 200 points. It finished above 13,000 for the first time since Jan. 3.
Microsoft, one of the 30 Dow stocks, gained 88 cents to close at $29.40 a share. Boeing, also a Dow stock, advanced 55 cents to $85.41.
Broader stock indicators also advanced. The Standard & Poor’s 500 index rose 23.75 to 1,409.34 — its first settlement above 1,400 since Jan. 14.
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The Nasdaq composite index climbed 67.91 to 2,480.71, its highest close since Jan. 10.
The long-suffering dollar rose again on better-than-expected economic data and the Federal Reserve’s apparent resolve to monitor inflation.
The readings were not all positive — consumer spending rose mainly due to rising prices for energy and food. The Institute for Supply Management report also indicated that materials costs are hurting companies.
But the dollar rallied anyway, pushing the euro down more than 1 percent to $1.5461 in late trading.
Trading was thin, with the major currency markets in London and elsewhere closed for the May Day holiday, but the dollar’s advance helped crude oil fall briefly below $111 a barrel and then settle at $112.52. That alleviated some of the inflation-related anxieties in the market, given that crude recently traded near a record $120 a barrel.
“I don’t know if it’s all turned around, but I think oil got out of control,” said Todd Leone, managing director of equity trading at Cowen.
The dollar’s rise comes a day after the Fed lowered key interest rates by a quarter-point, but suggested the economy should keep growing moderately, while inflation is a concern.
“What we’re seeing is that maybe the economy is not falling off a cliff, but perhaps leveling off,” said Peter Cardillo, chief market economist at Avalon Partners. “I think the Fed (rate-cutting campaign) is over with, even though the Fed’s statement didn’t say that.”