U.S. stocks advanced as energy producers gained with crude oil and phone shares rallied. Treasuries fell, while the dollar weakened for the first time in four days after data showed that American manufacturing growth slowed.
The Standard & Poor™s 500 Index rose 1.3 percent by 4 p.m. in New York, rallying from a two-week low. Energy producers in the index gained 3 percent, while Verizon Communications Inc. climbed 2.8 percent, driving telecommunications stocks up 2.4 percent. Ten-year Treasury yields climbed three basis points to 1.67 percent. The Bloomberg Dollar Spot Index fell after three days of gains. U.S. oil added 2.8 percent, while gold retreated.
Factories expanded in January at the weakest pace in a year as orders slackened, a sign weakness in overseas markets may be restraining U.S. manufacturing. Similar data for China signaled contraction in the sector. Nike Inc. slid as data showed consumer spending dropped last month, while Exxon Mobil Corp. and Chevron Corp. added more than 2.4 percent. U.S. stocks fell in January as Treasuries had their best month since 2008.
Source : Bloomberg