Business, Economics and Jobs

US stocks rise for third straight day on growing European optimism


Traders work on the floor of the New York Stock Exchange on June 6, 2012.


Spencer Platt

US stocks rose for the third straight day Tuesday on growing optimism that the European Central Bank will act to to stymy the euro zone's debt crisis.

The Standard & Poor's was pushed above 1,400 for the first time since May in light but steady trading on Wall Street, Reuters reported.

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The Dow Jones industrial average also came within 111 points of its 2012 high after it rallied 51 points, or 0.4 percent, Tuesday to finish at 13,168, according to USA Today.

The Nasdaq Composite Index was up 25 points, or 0.87 percent, to finish at 3,015.

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The US stock market hit a three-month high on Monday and Friday following a report Friday showing a better-than-expected 160,000 jobs were created last month and a pledge from the ECB head to take the needed steps to keep the euro intact despite the European debt crisis, the Wall Street Journal reported.

Tuesday's advance was led by stocks in cyclical sectors like energy, materials and consumer discretionary, while defensive sectors like telecoms and utilities edged lower, according to Reuters.

The news comes amid a new report that shows US consumer credit grew at its weakest pace in eight months in June, a potentially negative economic indicator.

Consumer credit grew by $6.46 billion in June -- well below the $11 billion increase economists had forecast in a Reuters survey.