US stocks higher on upbeat industrial figures
Lower oil prices and a rebound in manufacturing activity helped Wall Street extend its rally today, lifting the Dow Jones industrials to a fresh five-year high for the fourth straight session.
Investors cheered a Federal Reserve report that the nation’s industrial production grew 0.7% in February after sliding 0.3% the month before, with the onset of cold weather driving an upswing in utilities output.
The promising economic report overshadowed downbeat earnings news from General Motors Corp., which said its 2005 loss was two billion dollars more than originally reported. Insurance firm American International Group Inc. also posted a steep drop in profit from settling regulatory charges.
But stocks’ gains were limited as the day’s headlines did little to address Wall Street’s persistent worries about inflation and more interest rate hikes from the Fed, said Ken Tower, chief market strategist for Schwab’s CyberTrader.
“I think the question the market is struggling with is whether we are concerned about inflation and too strong an economy, or if the Fed is raising interest rates too much and cooling things off,” Tower said. “So we have a little pause in the market today as it tries to work this question out.”
The Dow climbed 26.41, or 0.23%, to 11,279.65, its highest close since reaching 11,257.24 on May 22, 2001.
Broader stock indicators also gained ground. The Standard & Poor’s 500 index rose 1.92, or 0.12%, to 1,307.25 – a fresh five-year high – and the Nasdaq composite index added 6.92, or 0.3%, to 2,306.48.
