U.S. Markets Wrap: Stocks, Commodities Gain on Economic Outlook

U.S. stocks climbed, extending a global advance that sent the MSCI World Index to the highest level in almost a year. Commodities gained amid speculation the economy has returned to growth.

Crude oil topped $72 a barrel, and natural gas soared 13 percent. Gold rose to a record close as the dollar slid to its weakest against the euro in almost a year. Treasury two-year notes fell the most in three weeks.

Shares of General Electric Co. jumped 6.3 percent and Alcoa Inc. climbed 3.4 percent after a Federal Reserve report showed industrial production increased more than forecast. New York Times Co. and Gannett Co. surged more than 10 percent after a market-research firm said some media companies may benefit from more spending on advertising.

“Investors have been embracing risk as they feel more comfortable about the global economy,” said John Carey, a Boston-based money manager at Pioneer Investments, which oversees more than $200 billion worldwide. “There seems to be a better sentiment regarding big companies, such as GE, that were under such a cloud during the peak of the credit crisis.”

The Standard & Poor’s 500 Index gained 1.5 percent to 1,068.76, and the Dow Jones Industrial Average added 108.3 points, or 1.1 percent, to 9,791.71. More than six stocks rose for each that fell on the New York Stock Exchange.

American Express Co. rallied 3.4 percent after Sandler O’Neill & Partners LP upgraded the shares.

Currency Market

The dollar declined as the increase in U.S. industrial output encouraged investors to buy higher-yielding assets.

New Zealand’s currency was one of the biggest winners among 16 counterparts measured against the yen and dollar as investors were lured to a three-month deposit rate almost 10 times higher than in the U.S. So-called carry trades funded with equal amounts of dollars and yen gained 1.3 percent this week, according to data compiled by Bloomberg.

“We are in an environment that is constructive for growth,” said Lauren Rosborough, a currency strategist in London at Westpac Banking Corp. “It is positive for high- yielding, high-beta currencies. We are seeing evidence that cash is moving out of banks.”

The dollar slid 0.5 percent to $1.4729 per euro from $1.4658 yesterday. It reached $1.4737, the weakest level since Sept. 25, 2008.

Oil Inventories

Crude oil rose after the U.S. Energy Department reported that inventories dropped to the lowest level since January.

Stockpiles fell 4.73 million barrels to 332.8 million, the weekly report showed. A 2.5 million-barrel decline was forecast, according to the median response of 15 analysts surveyed by Bloomberg News. Imports decreased 2.1 percent to an average 8.9 million barrels a day.