U.S. Stocks Gain on Manufacturing as Treasuries Retreat

Stocks advanced, sending the Dow Jones Industrial Average to the highest level since 2007, and Treasuries fell as faster growth in U.S. manufacturing fueled optimism in the world’s biggest economy. Oil surged above $106.

The Dow rallied 65.69 points, or 0.5 percent, to close at 13,279.32. The Standard & Poor’s 500 Index rose 0.6 percent to 1,405.82, erasing most of its April loss, as benchmark indexes in the U.K. and Ireland gained more than 1 percent and Denmark’s rose 0.2 percent. Other European markets were closed for a holiday. Ten-year Treasury yields rose three basis points to 1.95 percent. The Australian dollar slid 1 percent to $1.0330 and 10-year note yields slipped as low as 3.53 percent after the nation’s central bank cut interest rates.