Jan 12 (Reuters) - Wall Street's main indexes surged on Friday as strong results for JPMorgan lifted financial stocks and robust retail sales data drove gains in consumer stocks.
The Standard & Poor's 500 index posted its seventh gain in the last eight days.
The Dow Jones industrial average climbed 205.60 points, or 0.8%, to 25,574.73. The Nasdaq Composite Index was down 10.01 points, or 0.14 percent, to 7,153.57.
The yield on the 10-year Treasury went as high as 2.59 percent in the morning before falling back to 2.55 percent, the same level it was at late Tuesday.
Stocks have been rising at a remarkably steady pace for more than a year as investors bask in a global economy that's strengthening.
Trading was calmer following a wobble the day before, when a temporary rise in bond yields got investors anxious.
"Everyone's on edge about waiting for what's to come", even though central banks have promised to take a slow path toward higher rates, said Marina Severinovsky, investment strategist at Schroders.
Stocks fell on Wednesday as investors fretted over the possibility of China halting its Treasury bond purchases and the USA pulling out of NAFTA.
And a US government report Thursday showed that inflation was weaker on the wholesale level last month than economists expected.
The yield on the 10-year Treasury note rose to 2.51 percent from 2.48 percent late Monday, which raises their appeal relative to dividend-paying stocks for investors seeking income. It had climbed as high as 2.59% on Wednesday.
Investors have been preparing for a gradual rise in rates, as the Federal Reserve slowly removes the aid it provided the economy following the Great Recession.
"We're all anticipating rising rates, and have been for some time", Severinovsky said. Brent crude, the worldwide standard, rose $1.04 to settle at $68.82 per barrel. Brent crude, the worldwide standard, gained 10 cents to $67.88 per barrel.
The Russell 2000 index of smaller-company stocks gained 5.18, or 0.3 percent, to 1,591.97.
DIVIDENDS DULLED: Telecom stocks and utilities lagged well behind the market. Whether investors are anxious about a future pickup in rates or about how stocks have become more expensive than usual, any dip for the market over the a year ago has been shallow and short.
The next tests for companies will arrive in coming weeks, as they report their results for the last three months of 2017. They'll need to deliver strong profit growth to justify the big moves they've made already. Corporate profits are also on the upswing, and Washington's recently approved tax-cut legislation is expected to goose earnings even higher. The British pound rose to $1.3536 from $1.3509. Silver fell 7 cents to $16.97 an ounce.
Chevron climbed 2.8 percent Thursday and Exxon Mobil rose 1.2 percent.
Natural gas rose 18 cents to settle at $3.08 per 1,000 cubic feet. Wholesale gasoline rose 1 cent to $1.79 a gallon.
In overseas trading, South Korea's Kospi index rose 0.6%. Germany's DAX was up 0.4% and the FTSE 100 in London dropped 0.4%. France's CAC 40 rose 0.3%.
This article was originally published at 7 a.m.