New York – Solid earnings from Verizon Communications Inc. lifted stocks Tuesday, sending the Dow Jones industrial average to its best close in six years even as oil prices neared an all-time high.
Blue chip Verizon helped the Dow to its gains after saying its profit before special items topped Wall Street estimates.
Elsewhere, Sirius Satellite Radio Inc. posted a smaller-than-expected loss amid sharp subscriber gains.
There were no new economic reports. On Monday, data on consumer spending and industrial activity showed the economy is expanding at a healthy pace, but comments from Federal Reserve Chairman Ben Bernanke reignited interest-rate concerns and triggered a late-day sell-off.
With the Fed saying it could be near the end of its rate tightening, investors have become sensitive to any inflation signs that might lead to further increases in short- term lending rates.
Record energy and metals prices have some analysts questioning whether the central bank has done enough to stem inflation.
“After all of these increases, we’re really at a point of watchfulness to see if the rate hikes have been sufficient or too much,” said Susan Malley, chief investment officer of Malley Associates Capital Management. “There are fears in both directions.”
The Dow rose 73.16, or 0.64 percent, to 11,416.45, its best close since finishing at 11,489.59 on Jan. 19, 2000. The Dow is 2.6 percent off its record high of 11,722.98, set Jan. 14, 2000.
Broader stock indicators also advanced. The Standard & Poor’s 500 index gained 8.02, or 0.61 percent, to 1,313.21, and the Nasdaq composite index added 5.05, or 0.22 percent, to 2,309.84.
Crude-oil futures rose 91 cents to settle at $74.61 a barrel – oil reached a record $75.17 per barrel in late April – on the New York Mercantile Exchange as traders worried that tension over Iran’s nuclear-weapons program could lead to a supply cutoff from the key exporter.
