Wall St. stocks rise while bond yields fall with dollar
By Sinead Carew
NEW YORK (Reuters) - U.S. stocks closed higher on Tuesday despite mixed U.S. economic data as treasury yields and the dollar declined while oil prices were choppy ahead of an OPEC meeting later this week.
The euro bounced back from a multi-month low against the U.S. dollar on strong European data and as investors pared bets that the European Central Bank will soon ease policy further.
After falling 0.5 percent on Monday, the S&P 500 benchmark index of stocks closed at its highest since early November as investors gained confidence on the first day of the month.
The U.S. manufacturing sector contracted last month to its weakest level since June 2009, while construction spending rose in October to the highest level since December 2007.
"Look at the manufacturing numbers. That was clearly a disappointment, yet the market ploughed right through. We've got a market that seems to have found a path of least resistance to the upside," said Art Hogan, chief market strategist at Wunderlich Securities in New York.
While the data boosted U.S. Treasury debt prices, it pushed benchmark yields toward one-month lows, helping to make stocks "compelling," Hogan said. He also noted that positive online results boosted investor holiday shopping season expectations.
The Dow Jones industrial average .DJI rose 168.43 points, or 0.95 percent, to 17,888.35, the S&P 500 .SPX gained 22.22 points, or 1.07 percent, to 2,102.63 and the Nasdaq Composite .IXIC added 47.64 points, or 0.93 percent, to 5,156.31.
Investors were focused on Friday's November jobs report, which is expected to influence timing for the first U.S. interest rate hike since 2006. Most analysts expect an increase after the Federal Reserve's Dec. 15-16 meeting. Continued...