Published On: Sat, May 18th, 2013

Stocks Continue Rally amid new Optimism

For the fourth consecutive week, stocks in the U.S. rallied sending the indexes to new record highs

For the fourth consecutive week, stocks in the U.S. rallied sending the indexes to new record highs

May 18, 2013 - For the fourth consecutive week, stocks in the U.S. rallied sending the indexes to new record highs. New data indicated the confidence has improved amongst small businesses and consumers, which fueled optimism in the largest economy in the world.

The Standard & Poor 500 Index saw its entire 10 groups advance during last week as technology, industrial and financial stocks led the gains. Citigroup Inc and JPMorgan Chase were up over 5.5% as David Tepper a hedge-fund manager called the banks in the U.S. a good sector.

In technology, Cisco System Inc jumped by 15% for the Dow’s biggest increase after it reported that its profit had exceeded analysts’ projections.

The S&P500 was up 2.1% over the five days of last week. The index has seen an increase each week since April 19, with a total increase for 2013 of 17%. The Dow was up 1.6%.

Evidence, said economists, shows that if a slowdown does occur, it will not be as long or severe as it had been the past two years.

Consumer confidence in the American economy was up in May to the highest it has been in close to six years. Separate data released showed that small business confidence climbed during April to a high of six-months.

Retail sales along with an index of leading indicators in the U.S. also were up. This helped to overshadow some reports that showed a weakness in the country’s manufacturing.

Stocks increased following Tepper’s comments about U.S. banks, how he remains bullish and how he says the economy is better.

The bull market in the U.S. is in its fifth year. The S&P 500 has jumped by an amazing 146% from its low of 12-years in 2009. It has been driven by corporate earnings, which have for the most part been better than expected along with three different rounds of Federal Reserve bond purchases.

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