Stocks Close at a Record High As Energy Sector Recovers

A slight gain was enough to push the stock market to a record high Friday.

Stocks climbed as a rebound in oil prices pushed energy stocks higher. A report showing faster-than-forecast growth in Europe at the end of last year also boosted investor sentiment.

Investors were also picking over the latest earnings news. CBS gained after strong advertising revenue boosted its earnings. V.F. Corporation, a clothing company whose brands include Vans, Wrangler and Timberland, jumped after giving an upbeat outlook for the year.

Stocks have surged in February, rebounding from a January slump, as recovering oil prices have boosted energy stocks. Growing corporate earnings and the announcement of more stimulus from the European Central Bank to boost growth in the region have also helped turn around investor sentiment this month.

The Standard & Poor’s 500 rose 8.51 points, or 0.4 percent, to 2,096.99. That surpassed the previous record close of 2,090.57 set Dec. 29.

The Dow Jones industrial average climbed 46.97 points, or 0.3 percent, to 18,019.35. The index is still 35 points short of its all-time high. The Nasdaq composite gained 36.22 points, or 0.8 percent, to 4,893.84.

About three-quarters of the companies in the S&P 500 index have now reported results for the fourth quarter, and earnings for the period are projected to rise by 7.5 percent. While that is a decline from growth of 10.4 percent in the previous quarter, it’s better than analysts were expecting at the start of December.

While energy stocks have been rebounding this year, one of last year’s biggest gainers is this year’s biggest decliner.

Utilities surged 25 percent last year as investors pushed up the price of the dividend-rich stocks as bond yields fell. Now, as bond yields are showing signs of rising from their lows, investors are dumping the stocks. The sector is down 7 percent this month.

Stocks in the U.S. again got a lift from developments in Europe.

Data out Friday showed the eurozone economy picked up speed in the fourth quarter. The currency union’s economy grew 0.3 percent in the October-December period compared with the previous quarter, more than expected, thanks also to lower oil prices and a weaker euro. The growth rate, while encouraging, is still only about half that of the U.S.

Greece and its creditors in the 19-country eurozone took visible, if modest, steps to bridge their differences over Athens’ demands to lighten the load of its financial bailout.

In energy trading, benchmark U.S. crude rose $1.57 to $52.78 a barrel on the New York Mercantile Exchange. Brent crude climbed $2.24 to $61.52 a barrel in London.

In U.S. government bond trading, prices fell slightly. The yield on the 10-year benchmark government note edged up to 2.04 percent from 1.99 percent on Tuesday.

The dollar was little changed against the Japanese yen and the euro. The dollar traded at 118.75 yen, down from 118.85 yen the previous day. The euro was flat at $1.1406.

In metals trading, precious and industrial metals futures closed higher. Gold rose $6.40 to $1,227.10 an ounce, silver jumped 50 cents to $17.29 an ounce and copper edged up less than a penny to $2.61 a pound.

This article appeared in print on page 8 of the February 16th, 2015 edition of Hamodia.