US stock indexes reaching new highs as S&P 500 climbs above 1,700

U.S. stocks rose, sending the Standard & Poor’s 500 Index above 1,700 for the first time, after central banks vowed to maintain stimulus and manufacturing data exceeded estimates.

The S&P 500 rose 1.3% to 1,706.87 at 4 p.m. in New York. The Dow Jones Industrial Average advanced 128.48 points, or 0.8%, to a record 15,628.02. About 6.8 billion shares changed hands, or 7% above the three-month average.

“Central banks throughout the world remain accommodative and you do not want to fight the central banks,” Phil Orlando, New York-based chief equity strategist at Federated Investors, said by phone to Bloomberg. “All of the data from an economic standpoint is telling that the economy is continuing to get better, the labor market is improving, and corporate earnings are coming in better than expected. So this market should continue to work higher.”

The Fed said yesterday that persistently low inflation could hamper the economy and pledged to keep buying $85 billion in bonds every month. The statement came as data showed the U.S. economy grew more than projected in the second quarter.

All industries included in S&P 500 benchmark soared. The index grew by 5% in June which is the highest monthly advance since January. Jobless claims and manufacturing showed favorable for the economics numbers. Labor Department data today may show U.S. employers added 185,000 people to payrolls in July, as the jobless rate fell to 7.5% from 7.6% , according to Bloomberg surveys of more than 80 economists.

In financial sector, The KBW Bank Index rose 1.9% as all its members gained. American Express Co. added 2.5% to $75.63 for the biggest gain in the Dow, and Bank of America Corp. climbed 2.4% to $14.95.

MetLife surged 6.3% to $51.47. The largest U.S. life insurer said earnings, which exclude some investment results, were $1.44 a share. That beat the $1.33 average estimate of 20 analysts surveyed by Bloomberg.

DreamWorks shares raised by 8.8% to $26.95. The independent film studio run by Jeffrey Katzenberg reported a 75% surge in profit. “The Croods” was released on March 22 in the U.S. and later in countries including China and France, generating $71.8 million in revenue in the quarter.

Procter & Gamble gained 1.7% to $81.64. Earnings beat analyst forecasts, giving Chief Executive Officer A.G. Lafley some breathing room as he works to turn around the company he rejoined two months ago.

Automakers advanced 2.2% as a group in the S&P 500, as vehicle sales extended which is keeping the industry on track for its best year since 2007. Ford Motor Co. gained 1.8% to $17.19 as light-vehicle sales increased 11% in July. General Motors Co. added 1.7% to $36.47 after its deliveries jumped 16% last month.

Exxon Mobil slumped 1.1% to $92.73. The world’s biggest energy company by market value reported profit of $1.55 a share as returns from its fuel-making business plunged. That missed the average analyst estimate by 18%, the biggest gap since at least the fourth quarter of 2002.