U.S. Stocks Rise on Jobs as Treasuries Gain Amid Greece Concern

U.S. stocks rallied, rebounding as financial shares erased losses, after a drop in jobless claims and growth in housing starts tempered concern about the economy and higher costs for banks. Treasuries gained, pushing yields on 10-year notes to a 2011 low, on speculation Greece is struggling to avoid default.

The Standard & Poor’s 500 Index rose 0.2 percent at 4 p.m. in New York. It fell 0.6 percent earlier, trimming its year-to-date gain to less than 0.1 percent, after two people familiar with the matter said the Basel Committee on Banking Supervision is considering capital surcharges of as much as 3.5 percentage points. Yields on 10-year Treasuries slipped to 2.88 percent. The euro rose 0.2 percent to $1.4204 after weakening 0.8 percent. Copper and wheat declined.