NEW YORK (Reuters) – Stocks rose in the first week of 2012, even though news that the U.S. jobless rate neared a three-year low did not whet interest in equities on Friday.

The U.S. market came into the new year revisiting familiar themes, with signs the U.S. economic recovery was gathering speed taking some of the focus off of lingering concerns about the euro zone’s debt crisis.

“The news coming out of Europe was negative all week and we’re going to finish up, and I think that’s a real good performance in light of the background,” said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.

The Dow rose 1.2 percent, the S&P gained 1.6 percent and the Nasdaq added 2.7 percent for the week, with most gains coming from cyclical sectors tied to growth.

Among the week’s largest gainers the KBW bank index jumped 5.7 percent, in contrast with the 2.7 percent fall in the top gauge of European bank stocks .

Data this week painted a rosier picture on the labor, housing and retail markets, auguring a recovery in growth in 2012. The government’s report on non-farm payroll jobs for December earlier on Friday was the latest in a list of economic numbers that were stronger than anticipated.

On Friday the Dow and S&P edged lower. Worries about higher bond yields in Italy and Spain, as well as potential oil supply disruptions in the Middle East, were cited as giving investors a pause.

NEW YORK (Reuters) – U.S. stocks were on track to post gains for the first week of 2012 on Friday as signs of a sustainable economic recovery overshadowed lingering concerns about the euro zone’s debt crisis.

The government’s report on non-farm payroll jobs for December was the latest in a list of economic numbers that were stronger than anticipated. [ID:nL1E8C58N5] Data this week painted a rosier picture on the labor, housing and retail markets, auguring a recovery in growth in 2012.

“The employment statistics were unapologetically robust today and that is exactly what the market is looking for: signs of domestic growth,” said Jim Russell, regional investment manager for U.S. Bank Wealth Management in Cincinnati.

The Dow and S&P were on track to rise more than 1 percent this week and the Nasdaq added nearly 3 percent, with most gains coming from cyclical sectors tied to growth, including financials and energy. At the same time, volatility receded and the CBOE volatility index fell about 12 percent this week.

On Friday, the S&P hovered near break-even for most of the session, though it was mostly in negative territory. Worries about higher bond yields in Italy and Spain, as well as potential oil supply disruptions in the Middle East, were cited as giving investors a pause.

Caution ahead of next week’s auctions sent Italian benchmark yields above 7 percent while Spain’s 10-year paper yields also edged up to 5.758 percent.

“There were a lot of fireworks earlier in the week and perhaps there’s a little bit of nervousness going into the weekend with Europe and Iran as concerns,” said U.S. Bank’s Russell. “It feels like a tired market.”

NEW YORK (Reuters) – Banks led Wall Street to gains on Thursday even as Europe struggled again, a sign investors are betting a relatively strong U.S. economy will help U.S. stocks outperform other markets.

Overall gains were small, but banks advanced for a third day, supported by better-than-expected economic data. U.S. financial shares continued to delink from their European peers as investors see more potential for growth in U.S. lending that could offset worries about the euro zone debt crisis.

The KBW bank index rose 2.2 percent, extending the week’s advance to about 6 percent. Bank of America Corp (BAC.N: Quote, Profile, Research) jumped 8.6 percent to $6.31.

“While you do have the European issues, the U.S. banks do have some offsets,” said John Manley, the New York-based chief equity strategist at Wells Fargo Funds Management.

“There are signs of potential stability in the housing market and U.S. banks are probably being helped by that.”

Traders initially focused on heavy losses in European bank shares, led by UniCredit (CRDI.MI: Quote, Profile, Research). Italy’s largest bank has lost more than 30 percent of its value this week after it priced a share offering meant to shore up its ravaged balance sheet.

Other European bank shares fell, and an index of the region’s lenders tumbled 3.24 percent.

NEW YORK (Reuters) – Major U.S. stock indexes were little changed in a low-volume session on Wednesday, but some investors were encouraged to see equities avoid a sell-off amid the lingering euro zone’s debt problems.

Indexes held on to the previous day’s large gains even as the euro dropped sharply against the dollar. Notably, U.S. banks held up well, even though bad news in Europe centered around the difficulties for some European lenders.

Tight credit markets are making it expensive for European banks to raise capital and for euro-zone countries to refinance debt. The latest sign of stress came from Italy’s biggest bank, UniCredit (CRDI.MI: Quote, Profile, Research), which fell nearly 10 percent after it offered to sell 7.5 billion euros in shares at a steep discount to shore up its balance sheet.

A gauge of European bank shares dropped 1.6 percent, but in New York the KBW bank index added 0.34 percent.

“Some of what’s been going on in the last weeks is the U.S. is starting to delink from Europe,” said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis.

“Not that we’ve totally isolated ourselves, but the fact you’re seeing more days when the euro is off and the market here is up is evidence of some delinking,” he said. “If the U.S. economy is growing again, it’s much less vulnerable to external shocks.”

Investors were encouraged by a sharp rise in new orders for U.S. factory goods in November, further evidence the economy is recovering.

NEW YORK (Reuters) – Hoping for something better than 2011′s flat stock market, U.S. investors pushed shares higher on Tuesday to begin the new year, though questions remain about whether a rally can be sustained.

The broad S&P 500 index closed at its highest since late October as traders, with cash on hand for the new year, welcomed better-than-expected German and Chinese economic data.

The upbeat response was reinforced by U.S. economic reports showing construction spending and factory activity beat economists’ forecasts.

“There were some good economic numbers from outside the U.S., and people have cash to invest for the new year so that’s driving up prices,” said Giri Cherukuri, head trader at OakBrook Investments in Lisle, Illinois. “It’s a good start but we’ll have to wait and see for the trend.”

Trading volume was below normal. About 7 billion shares changed hands on the New York Stock Exchange, the Nasdaq and Amex, compared with last year’s daily average of about 7.84 billion shares.

Advancers led decliners on the New York Stock Exchange by more than 16 to 5 and by about 14 to 5 on the Nasdaq.

Materials companies and financials, the lagging sectors in 2011, were among Tuesday’s market leaders with the KBW bank index up 3.3 percent. U.S. Steel gained 6.5 percent to $28.17 after losing more than half its market value in 2011.

NEW YORK (Reuters) – Wall Street stocks kicked off 2012 with a rally on Tuesday after construction and factory data signaled the U.S. economic recovery was gaining steam.

Indexes held on to gains after minutes from last month’s Federal Reserve meeting said a number of Fed officials believed economic conditions could well warrant a further easing of monetary policy.

Traders, with cash on hand for the new year, were also encouraged by data from China and Germany suggesting improvement in those economies.

Data showed U.S. manufacturing sector growth accelerated in December, its best month since June, while a rise in new orders suggested the economy gained momentum in the year end. Separately, construction spending in November surged to the highest in nearly 18 months.

“There’s more and more evidence the U.S. economy is doing OK,” said Giri Cherukuri, head trader at OakBrook Investments in Lisle, Illinois.

“There were some good economic numbers from outside the U.S., and people have cash to invest for the new year so that’s driving up prices,” he said. “It’s a good start but we’ll have to wait and see for the trend.”

The Dow Jones industrial average .DJI added 215.28 points, or 1.76 percent, at 12,432.84. The Standard & Poor’s 500 Index .INX rose 22.14 points, or 1.76 percent, at 1,279.74. The Nasdaq Composite .IXIC was up 46.89 points, or 1.80 percent, at 2,652.04.

NEW YORK (Reuters) – World stocks advanced on Thursday, boosted by a rosier U.S. economic outlook and rising European bank shares, while the euro struggled versus the U.S. dollar on concerns that the euro zone debt crisis will only continue to intensify.

The benchmark U.S. stock index rose for a third straight day after government data showed new claims for unemployment benefits dropped to their lowest in more than 3-1/2 years, and stronger business investment pointed to a pick-up in output in the current quarter.

U.S. consumer sentiment improved in December to its highest level in six months.

“This is supportive of the fact that the economy is gaining momentum and that the fourth quarter will be much better than people were expecting even just a month ago,” said Jim McDonald, chief investment strategist at Chicago-based Northern Trust Global Investments.

Banks were among the top performers in European and U.S. equity markets. Traders said the European Central Bank’s cheap loans to lenders would help ease their funding strains.

The STOXX Europe 600 Banks index closed up 2.0 percent and the benchmark FTSEurofirst 300 added 1 percent.

The S&P financial sector added 2.05 percent.

NEW YORK (Reuters) – Stocks rose on a Thursday, boosted by strong U.S. labor market data and bids on European banks, while the euro struggled versus the U.S. dollar on concerns that the euro zone debt crisis will only continue to intensify.

Volatility was expected as trading volumes in major markets were thin.

Stocks opened higher on Wall Street after the U.S. government reported that new claims for unemployment benefits dropped to their lowest in more than 3-1/2 years, and stronger business investment and a fall in inventories pointed to a pickup in output in the current quarter despite a lower reading in revised Q3 gross domestic product.

“Clearly the year has ramped nicely, based on an improving economic picture,” said Phil Orlando, chief equity market strategist at Federated Investors in New York.

“The double-dip fear the bears were talking about in the second half of the year is off the table at this point and investors are seeing domestic fundamentals are in pretty good shape.”

Banks were among the top performers in European and U.S. equity markets. Traders said the European Central Bank tender of cheap loans to the sector would help ease the funding strains for banks.

The STOXX Europe 600 Banks index rose 1.5 percent and the S&P financial sector added 0.8 percent.

NEW YORK (Reuters) – Stocks rose on a Thursday, boosted by strong U.S. labor market data and bids on European banks, while the euro struggled versus the U.S. dollar on concerns that the euro zone debt crisis will only continue to intensify.

Volatility was expected as trading volumes in major markets were thin.

Stocks opened higher on Wall Street after the U.S. government reported that new claims for unemployment benefits dropped to their lowest in more than 3-1/2 years, and stronger business investment and a fall in inventories pointed to a pickup in output in the current quarter despite a lower reading in revised Q3 gross domestic product.

“Clearly the year has ramped nicely, based on an improving economic picture,” said Phil Orlando, chief equity market strategist at Federated Investors in New York.

“The double-dip fear the bears were talking about in the second half of the year is off the table at this point and investors are seeing domestic fundamentals are in pretty good shape.”

Banks were among the top performers in European and U.S. equity markets. Traders said the European Central Bank tender of cheap loans to the sector would help ease the funding strains for banks.

The STOXX Europe 600 Banks index rose 1.5 percent and the S&P financial sector added 0.8 percent.

NEW YORK (Reuters) – The euro fell on Wednesday as doubts set in over whether fresh lending by the European Central Bank would be used to buy struggling euro zone debt, while weak earnings from Oracle weighed on technology stocks and dragged Wall Street lower.

Global shares drifted towards break-even for the day, holding on to strong gains from the previous session, though volumes were thin as the year-end holidays approach.

Italian and Spanish government bond yields rose, snapping an eight-session down trend, while prices of German Bunds edged up.

Initial optimism about ECB lending to euro zone banks gave way to concerns that the flood of liquidity only highlighted the scale of the pressure European banks are under.

The ECB lent 489 billion euros to banks to ease the inter-bank credit crunch and tempt banks to buy higher-yielding Italian and Spanish debt, but optimism that the funding would ease Europe’s two-year-old debt crisis quickly faded.

An Italian industry group said banks would not increase their exposure to sovereign debt even after the ECB offering because European Bank Authority rules discourage it.

“The key question remains what the banks will do with the newly acquired funds,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.