U.S. stocks climb to record levels amid optimism

U.S. stocks rose, with benchmark indexes closing at all-time highs, amid optimism the economy is showing sufficient strength to weather a slowdown overseas.

Phone companies led gains, while technology stocks rose as Hewlett-Packard Co. advanced to the highest level since May 2011 even after missing analyst earnings estimates. Energy producers decreased as Seadrill Ltd. suspended dividends amid the lowest oil prices in more than four years.

The Standard & Poor's 500 Index rose 5.80 points, or 0.28 percent, to 2,072.83, extending gains in the final 15 minutes of trading. The Dow Jones industrial average added 12.81 points, or 0.07 percent, to 17,827.75. Both gauges ended at records. The Nasdaq climbed 29.07 points, or 0.61 percent, to 4,787.32. U.S. markets will be closed Thursday for Thanksgiving.

"Economic numbers in general have been good, and that optimism is following through," Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said. "It could be a good retail season, and low gas prices are making a difference."

Consumer confidence climbed to a seven-year high in November, according to the University of Michigan, as Americans' views of their financial well-being improved heading into the holiday shopping season.

A report Tuesday showed U.S. gross domestic product expanded at a 3.9 percent annualized rate in the third quarter, more than initially estimated.

The S&P 500 has advanced each December for the last six years. It is up 11 percent from its low last month, and is heading for a second monthly gain, as data signaled the U.S. economy is improving and central banks in Europe, Japan, and China added more stimulus measures.

The rally in American equities has pushed stock valuations to near the highest levels since 2009. The S&P 500 trades at 17.2 times the projected earnings of its members, up from a multiple as low as 15.5 last month. Profit for S&P 500 companies may rise 7.6 percent this year, estimates compiled by Bloomberg show.

Calm has returned to equity markets. The Chicago Board Options Exchange Volatility Index, the gauge of options prices known as the VIX, has dropped 13 percent in the last five days to a two-month low. The benchmark gauge of price swings surged to a more than two-year high on Oct. 15.