Stocks rose on Friday, capping the S&P 500's longest weekly winning streak since 2007, helped by a reassuring report on the mood of consumers and stabilization in General Electric
The Reuters/University of Michigan survey showed that U.S. consumers have more confidence in the economy than they have had since the sudden collapse of Lehman Brothers in September, the latest in a spate of data suggesting the economic slump may be easing.
GE and Citigroup both posted better-than-expected results, lifting the broader market, and bank stocks rallied as investors bet other financial companies could follow up with more news showing the sector is on the mend.
Among banks, shares of Bank of America
The rate of deceleration in the economy is slowing, said David Lutz, managing director of trading at Stifel Nicolaus Capital Markets in Baltimore.
From a macro standpoint, the reason for a lot of the drive is just that we're continuing to get data points that show things are beginning to operate very well in the credit markets.
The Dow Jones industrial average <.DJI> rose 5.90 points, or 0.07 percent, to 8,131.33. The Standard & Poor's 500 Index <.SPX> climbed 4.30 points, or 0.50 percent, to 869.60. The Nasdaq Composite Index <.IXIC> added 2.63 points, or 0.16 percent, to 1,673.07.
The surge capped the S&P 500's longest weekly winning streak since spring 2007 and added to its strong recovery since the stock market's descent to 12-year closing lows early last month.
For the week, the S&P 500 rose 1.5 percent, the Dow climbed 0.6 percent and the Nasdaq gained 1.2 percent.
The benchmark S&P 500 is now up more than 28 percent since the bear market closing low of March 9. Its year-to-date drop has narrowed to about 4 percent.
On Nasdaq, a 1.6 percent gain in the shares of Apple
Apple is probably going to have positive things to say, added Lutz.
Apple's stock closed at $123.42, while Google
Also underpinning the market's advance were the gains in the shares of companies seen better able to withstand economic downturns.
Shares of fast-food company McDonald's Corp
Deutsche Bank said Procter & Gamble
added 1.6 percent to $53.05.
Profit-taking ahead of the weekend, however, tempered some of the upside, according to traders.
Citigroup reported a smaller-than-expected first-quarter loss, but its shares dropped almost 9 percent to $3.65 as some investors paused following the stock's strong run-up since early last month when the bank said, along with others, it had had a good start to 2009.
(Editing by Jan Paschal)