NEW YORK — Stocks rallied Friday but posted mixed weekly performance, as fears over inflation were offset somewhat by a rising dollar, a drop in crude-oil prices and a report showing that May consumer prices were in line with expectations, excluding food and energy.
Treasury bonds, which had their worst week since 2001, rebounded after the report, reflecting lessened concerns about inflation.
The Dow Jones industrial average finished up 165.77 points, or 1.4 percent, to 12,307.35, with 28 of its 30 components rising. For the week, the Dow rose 97.54 points, or 0.8 percent.
“The market breathed a sigh of relief, with the core number coming in line,” said Peter Boockvar, equity strategist at Miller Tabak.
In addition, “the dollar continues to get better after a lot of bearishness,” he said. “It’s having its day right now.”
The dollar continued to rally Friday, receiving a boost as top finance ministers gather in Japan to discuss inflation worries.
Strength in the greenback tends to weigh on dollar-denominated commodities, such as crude oil and gold.
Crude oil for July delivery fell $1.88 to end at $134.86 a barrel, helping to soothe concerns that surging energy prices are dampening U.S. consumption.
Besides oil, gold prices also slumped as the dollar rallied.
The Standard & Poor’s 500 Index gained 20.16 points, or 1.5 percent, to end at 1,360.03, unchanged from a week earlier.
The Nasdaq Composite advanced 50.15 points, or 2 percent, to finish at 2,454.50. But for the week, the tech-heavy index fell 20.06 points, or 0.8 percent.
Consumer-related stocks were among the main gainers on the S&P 500, along with materials stocks, such as Dow Chemical and Rohm and Haas, which are purchasers of raw materials.
Trading volumes showed 1.2 billion shares trading on the New York Stock Exchange, with gainers topping decliners by nearly 3 to 1.
On the Nasdaq, 905 million shares traded, with gainers topping decliners by 5 to 2.
Among Dow components, Coca-Cola dipped 3 percent after Hellenic Bottling, one of the beverage maker’s top bottlers, issued an earnings warning, citing economic conditions in Italy, Ukraine and Romania, adverse weather in central Europe, rising plastic prices and a strike in Greece.
U.S. consumer prices rose 0.6 percent in May, the fastest pace in six months, bolstered by surging energy prices, the Labor Department reported Friday.
But while the report topped economists’ forecasts, the core CPI, which excludes food and energy prices, rose 0.2 percent as expected.
The data come as inflation has overtaken weak growth as the top concern for financial markets and for some officials at the Federal Reserve.
