NEW YORK — U.S. stocks surged Friday after an upbeat measure of U.S. manufacturing propelled Wall Street to a winning week.
“The economic numbers came out strong, the market took off and hasn’t receded since,” said Stephen Carl, head equity trader at the Williams Capital Group.
Extending gains into a fifth consecutive session, the Dow Jones industrial average climbed 168.43 points, or 1.4 percent, to 12,582.77. The blue-chip index, which began the day nearly 500 points higher from where it stood at last Friday’s close, tallied a weekly gain of 5.4 percent.
Up 5.6 percent for the week, the S&P 500 index rose 19.03 points Friday, or 1.4 percent, to 1,339.67, with consumer discretionary the best performing of its 10 major industry groups, led by Harman International Industries Inc., up 2.3 percent a day after the supplier of audio equipment said it would raise its annual dividend to 30 cents a share.
The Nasdaq composite index added 42.51 points, or 1.5 percent, to 2,816.03, giving it a weekly rise of 6.1 percent.
With the benchmark indexes finishing higher every day of the week, the market’s “a little toppy, so we can anticipate a bit of profit-taking Tuesday morning for those institutions that are in,” Carl said.
“The drivers … were end-of-quarter window dressing by managers wanting to look good coupled to corporate-stock buybacks, with a little dumb money thrown in for good measure,” Steven Evanson, president of Evanson Asset Management, said of the four-day winning streak that closed out the second quarter Thursday.
The catalyst for the gains was the Institute for Supply Management, which said its index of manufacturing activity climbed to 55.3 percent in June from 53.5 percent the prior month. The gauge had fallen sharply in May as a result of a shortage in parts manufactured in Japan needed for cars.
The ISM report, combined with a similar reading the prior day on factory activity in the Chicago area, “suggests that manufacturing has indeed picked up,” said Dan Greenhaus, chief global strategist at BTIG LLC.
