Stocks Rally on Economic Data as Euro Erases Drop Versus Dollar

U.S. stocks rose, restoring the yearly gain for the Standard & Poor’s 500 Index, as economic data signaled the U.S. is weathering Europe’s debt crisis. The euro erased an earlier loss versus the dollar and European shares gained. Treasuries rose.

The S&P 500 climbed 1.1 percent to close at 1,263.02 at 4 p.m. in New York, leaving it up 0.4 percent for the year, and the Dow Jones Industrial Average increased 135.63 points, or 1.1 percent, to 12,287.04. The euro added 0.2 percent to $1.2964, after falling as much as 0.6 percent, and trimmed a 0.8 percent slide versus the yen to 0.3 percent. Italy’s 10-year bond yield rose three basis points to 7.03 percent after climbing 13 basis points earlier. Ten-year U.S. Treasury rates lost two basis points to 1.90 percent.