U.S. stocks rose as Intel Corp. rallied on earnings, while Treasuries gained after a drop in manufacturing bolstered the case for continued stimulus. European bonds climbed and oil reached the highest level of the year.
The Standard & Poor’s 500 Index added 0.5 percent at 12:01 p.m. in New York, reaching within 0.5 percent of its all-time high. The Stoxx Europe 600 Index rose 0.6 percent to a record. The yield on 10-year Treasury notes fell a fourth day, while similar-maturity German bunds set a record-low yield as Mario Draghi signaled he will stay the course with his bond-buying program. The Shanghai Composite Index lost 1.2 percent after China’s economy grew at the slowest pace since 2009. Oil jumped 4.2 percent as U.S. crude supply gains eased.
Total U.S. industrial output fell more than projected in March, the latest sign a strong dollar and cheap oil are hurting American manufacturing as the Federal Reserve debates raising interest rates. Draghi, the European Central Bank President, said quantitative easing is helping the region’s economic recovery and the program must be implemented in full. Intel surged after its forecast for the second quarter exceeded some analysts’ projections.