New York – Stocks posted moderate gains Thursday, buoyed by Hewlett-Packard Co.’s earnings, a surprising jump in home construction and more positive comments from the Federal Reserve.
The Dow Jones industrial average posted a 4 1/2-year high on a late surge in trading.
Hewlett-Packard’s ongoing turnaround encouraged buying in the technology sector and helped the Dow reach its highest level since June 5, 2001, demonstrating Wall Street’s confidence in large-cap stocks.
Investors’ economic worries were eased as the news on home construction, which jumped 14.5 percent last month, followed a bullish economic outlook from new Federal Reserve Chairman Ben Bernanke.
“Clearly, the market has turned for the better here,” said Joseph Battipaglia, chief investment officer at Ryan Beck & Co. “You’re seeing today some of the ebb and flow that’s to be expected in a market like this, but with Bernanke saying the economy is still powering ahead, this is not a bad environment to be in.”
However, with the major indexes posting substantial gains for the week, Thursday’s trading was lackluster until the last half- hour of the session, when St. Louis Fed President William Poole said the Fed was close to stopping interest-rate hikes.
The Dow rose 61.71, or 0.56 percent, to 11,120.68. Broader stock indicators also posted modest gains. The Standard & Poor’s 500 index rose 9.38, or 0.73 percent, to 1,289.38, and the tech-focused Nasdaq composite index added 18.20, or 0.8 percent, to 2,294.63.
Bonds were little changed, with the yield on the 10-year Treasury note falling to 4.59 percent from 4.60 percent late Wednesday.
The dollar rose against most major currencies, while gold prices fell.
A jump in oil prices limited the stock market’s gains. A barrel of light crude settled at $58.46, up 81 cents, on the New York Mercantile Exchange.
Some analysts question whether future uncertainties could keep stocks from building on their gains.
