By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Friday rose towards weekly gains after Congress approved a tax-cut extension and durable goods in November rose the most in four months.
“An early Christmas has descended on the economy in the form of better numbers and a two-month extension of the payroll tax cut,” Kevin Giddis, a fixed-income strategist at Morgan Keegan, wrote in emailed commentary.
Up 3.1% on the week and 5.6% for 2011 so far, the Dow Jones Industrial Average DJIA +0.64% added 59.15 points, or 0.5%, to 12,228.80, with 26 of its 30 components rising.
The S&P 500 SPX +0.61% added 5.98 points, or 0.5%, to 1,259.98, with telecom and utilities leading gains that included all of its 10 major sectors. The index is currently up 3.3% from last Friday’s close and 0.2% higher than it stood at the end of 2010.
The Nasdaq Composite COMP +0.41% advanced 7.59 points, or 0.3%, to 2,607.04, leaving it ahead 2% for the week and off 1.7% for 2011.
For every five stocks falling nine gained on the New York Stock Exchange, where 151 million shares traded as of 11:20 a.m. Eastern.
“Keep in mind that trading volume is light and directional moves, as a result, might be a bit exaggerated, but investors appear to be voting with sell tickets for Treasuries and buy tickets for riskier assets like stocks, anticipating that in 2012, the economy will do better, even if it is by just a little,” noted Giddis.
Treasury prices fell, with the yield on the benchmark 10-year note 10_YEAR +3.69% used in determining mortgage rates and other consumer loans rising to 2.034%. Read more on bonds.
On the New York Mercantile Exchange, crude-oil futures CL2G +0.38% rose 0.4% to $99.90 a barrel and gold futures GC2G -0.12% fell 0.2% to $1,608.10 an ounce. Read more on gold.
In Washington, Congress approved a two-month payroll tax cut extension a day after Republicans in the House gave way to President Barack Obama and Senate Republicans on the issue. The measure now goes to the White House for President Barack Obama’s signature.
The Commerce Department on Friday said orders for long-lasting goods climbed 3.8% in November, while consumer spending climbed 0.1% last month. A third report had new-home sales rising 1.6% last month to a seven-month high.
