Wall Street extended its advance Friday after reports showed inflation remained tame in November and industrial production rose for the first time in two months amid increased output by automobile makers.
NEW YORK (AP) — Wall Street extended its advance Friday after reports showed inflation remained tame in November and industrial production rose for the first time in two months amid increased output by automobile makers. The Dow Jones industrial average posted its second straight record close, and the major indexes closed the week with substantial gains.
The data underscored a sense in the market that the economy is slowing at a reasonable pace and that inflation, a key concern of the Federal Reserve, is in check. High inflationary readings would likely make the Fed hesitant to lower short-term interest rates.
“You have a fairly benign interest rate environment which has eased the pain that oil inflicted back in the summer,” said John O’Donoghue, co-head of equities at Cowen & Co. He contends the emerging economic picture and merger deals have left investors feeling emboldened and will likely help send stocks higher as the end of the year nears.
According to preliminary calculations, the Dow rose 28.76, or 0.23 percent, to 12,445.52. The Dow eclipsed its record close of 12,416.76 set Thursday, its first in nearly a month, and set a new trading high Friday of 12,486.30. Eleven of the 30 stocks that comprise the blue chip index reached fresh 52-week highs Friday.
Broader stock indicators also moved higher. The Standard & Poor’s 500 index closed at a new six-year high, rising 1.60, or 0.11 percent, to 1,427.09. The Nasdaq composite index was up 3.35, or 0.14 percent, at 2,457.20.
Bonds were little changed, with the yield on the benchmark 10-year Treasury note flat at 4.60 percent, compared with late Thursday. The dollar was mixed against other major currencies, while gold prices fell.