US stocks hit 5-month high in year-end rebound

The Dow Jones Industrial Average sailed into the holiday weekend at a five-month high, riding the continuing U.S. recovery and a break in the latest congressional deadlock. The blue-chip Dow tacked on 124.35 points, or 1%, to 12294.00, capping a weeklong respite from the volatility that has whipsawed investors and money managers for months, according to a report by the Wall Street Journal (WSJ). Friday''s gains pushed the broader Standard & Poor''s 500-stock index back into positive territory for 2011. The Dow now is back to where it was in late July, just as the European debt crisis and the congressional deficit-reduction battle were coming to a head, said WSJ. Since then, investors have endured some of the wildest stock-market swings in years as many in the market feared a collapse of the euro zone and gridlock in Washington. The European Central Bank''s move this week to extend liquidity to euro-zone banks for three years pleased investors. Investors also were encouraged by a break in the latest congressional deadlock, after lawmakers in the House and the Senate voted to temporarily extend a payroll tax cut by two months and agreed to begin negotiations on a yearlong extension. Dow Jones Industrial Average is an index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market. It is the second oldest U.S. market index after the Dow Jones Transportation Average. European shares also turned in their best weekly performance since early December on Friday on optimism about a global recovery. Oil stocks, which are heavily geared towards global growth, were the best performers, with the STOXX Europe 600 Oil & Gas index up 1.3 percent and finishing the week 3.9 percent higher.