U.S. stocks rose as Intel Corp. rallied on earnings and energy shares surged after oil reached the highest level this year. The dollar fell after a drop in manufacturing bolstered the case for continued stimulus.
The Standard & Poor’s 500 Index added 0.5 percent at 4 p.m. in New York, closing 0.5 percent below its all-time high. The Russell 2000 Index of small companies rose 0.8 percent to a record, while the Stoxx Europe 600 Index added 0.6 percent to extend its high. Ten-year German bunds set a record-low yield as Mario Draghi signaled he will stay the course with his bond-buying program. The dollar fell a second day versus the euro. Oil jumped 5.8 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, while energy shares rallied with crude.
Source : Bloomberg