Stocks climb, pushing the Dow Jones industrial average above 18,000

Stocks rose for the third day in a row Wednesday as machinery and mining companies traded higher. Oil prices also continued their rise, and stocks and oil prices are at their highest in almost a year.

Metals prices jumped as the dollar weakened. Also trading higher were makers of beverages and other consumer goods. That’s because a weaker dollar could mean better sales and bigger profits for U.S. companies that do a lot of business overseas.

Kate Warne, an investment strategist for Edward Jones, said the dollar weakness won’t last: The Federal Reserve is preparing to eventually raise interest rates, which will make the dollar stronger, while stimulus policies of central banks in Europe and Japan will cause their own currencies to depreciate.

“The dollar will bounce around,” she said. “It’s not likely to weaken a whole lot given the gap in central bank policies.”

The Dow Jones industrial average rose 66.77 points, or 0.4%, to 18,005.05. The Standard & Poor’s 500 index went up 6.99 points, or 0.3%, to 2,119.12. The Nasdaq composite advanced 12.89 points, or 0.3%, to 4,974.64. The S&P 500 and oil prices are both at their highest levels since July, and the Nasdaq hasn’t been this high since Dec. 31.

Machinery maker Caterpillar rose 1.7% to $78.11, and engine maker Cummins climbed 1.5% to $118.87. Gold and copper producer Freeport-McMoRan advanced 3% to $11.58, and gold producer Newmont Mining ticked up 1.2% to $35.38.

The dollar declined to 106.94 yen from 107.31 yen. The euro edged up to $1.1397 from $1.1361. The dollar has been very strong over the last few years but slipped a bit in the wake of Friday’s disappointing jobs report.

The price of gold jumped $15.30, or 1.2%, to $1,262.30 an ounce, and silver leaped 59 cents, or 3.6%, to $16.99 an ounce. Copper advanced 1 cent to $2.06 a pound.

Oil prices continued to rise. Benchmark U.S. crude rose 87 cents, or 1.7%, to $51.23 a barrel in New York. Brent crude, the benchmark for international oil prices, jumped $1.07, or 2.1%, to $52.51 a barrel in London.

Brown-Forman, the maker of Jack Daniel’s and other liquor brands, gained ground after it reported strong fourth-quarter results. The stock rose 3.5% to $100.80. Competitor Constellation Brands, which makes Corona, Negra Modelo and Pacifico beers, rose 2% to $154.06, and Molson Coors rose 1.9% to $103.60.

Other makers of household goods also rose. Kellogg advanced 1.2% to $76.08, and PepsiCo edged up 0.7% to $103.18.

Utility companies gained ground as bond yields fell. Utilities are stable, dividend-paying investments that are often compared to bonds, and investors bought them as yields decreased. NextEra Energy rose 1.5% to $122.92, and Duke Energy advanced 0.7% to $80.51.

VeriFone Systems, which makes terminals used for electronic payments, slashed its annual forecast after it reported disappointing quarterly results. The San Jose company said it will eliminate jobs and review some of its struggling businesses. Its shares dived 24.7% to $21.27.

Dave & Buster’s climbed 10.2% to $46.15 after the restaurant chain reported strong first-quarter results and raised its outlook for the year.

Headphones maker Skullcandy surged 16% to $4.56 after its founder said he might want to take the company private. Rick Alden, Skullcandy’s largest shareholder, disclosed the idea in a form filed with the Securities and Exchange Commission.

In other energy trading, wholesale gasoline rose 3 cents to $1.62 a gallon. Heating oil ticked up 3 cents to $1.57 a gallon. Natural gas was unchanged at $2.47 per 1,000 cubic feet.

Germany’s DAX was down 0.7%, and France’s CAC-40 shed 0.6%. Britain’s FTSE 100 advanced 0.3%. Tokyo’s Nikkei 225 gained 0.9%, and Seoul’s Kospi advanced 0.8%.

U.S. government bond prices rose. The yield on the 10-year U.S. Treasury note fell to 1.70% from 1.72%.

UPDATES:

3:01 p.m.: This article was updated with additional information.

1:24 p.m.: This article was updated with closing prices.

7:44 a.m.: This article was updated with additional information.

This article was originally published at 7:03 a.m.