Stocks moved higher in moderate trading Thursday, thanks to a rally in oil-related stocks that accompanied another increase in oil prices.
Wall Street cheered a worse-than-expected report on new-home sales in August as a sign that the Federal Reserve will cut interest rates again in late October. On the other hand, the weekly report on initial claims for state unemployment compensation indicated that the labor market remains buoyant.
Treasury securities rallied along with stocks, reflecting the latest housing data as well as a strong reception for the Treasury’s auction of $13 billion in 5-year notes.
The dollar slumped to new lows against major currencies.
The Dow Jones industrial average rose 34.79 points, to 13,912.94. Multinational companies, led by Chicago-based Boeing, that could benefit from a weaker dollar were the biggest contributors to the Dow’s advance. Boeing added $1.01, to $105.46.
General Motors was the biggest loser, as traders had second thoughts about Wednesday’s poststrike rally in GM shares. GM closed down $1.18, at $36.46.
The three biggest contributors to the day’s gain by the Standard & Poor’s 500 index were energy companies: Exxon Mobil, Schlumberger and Chevron.
Oil for November delivery rose $2.58 a barrel, to $82.88. Traders attributed the increase to the weak dollar, a global appetite for commodities and the appearance of a new tropical storm in the Gulf of Mexico.
Among stocks in the news, SLM, parent of the Student Loan Marketing Association, jumped $4.11, or more than 9 percent, to $49.12, amid optimism that a private-equity buyout offer for the company will be completed, despite balking by lenders to the deal. SLM was the biggest percentage gainer among the S&P 500 stocks.
New York Stock Exchange trading volume reached 1.18 billion shares. Advancing stocks outnumbered losers by a 2-1 ratio. Nasdaq trading volume totaled 1.75 billion shares, as winners topped losers by nearly a 3-2 ratio.
The yield awarded at the 5-year note auction was 4.250 percent, up slightly from 4.248 percent at last month’s 5-year note auction. Monthly reports on personal income and spending could highlight trading Friday.
