Stocks continued their climb into record territory, despite some hiccups caused by more subdued economic reports. US producer and consumer prices fell in April, housing data were mixed, industrial production slumped and weekly jobless claims jumped. However, small business and consumer sentiment improved, and the Conference Board's leading economic indicators rose. Japan's economy grew at a 3.5% annualized rate in the first quarter, the clearest indication to date of the benefits of the country's stimulus efforts. The eurozone economy continued its downward spiral with a sixth quarter of recession. Up 145% from a dozen-year low in 2009, the S&P 500 is up nearly 17% for the year so far. On Friday, the S&P 500 climbed 11.95 points to 1,662.42, with energy leading gains and consumer staples the worst performing of its 10 sectors, with the index climbing 1.8% on the week. Rising 1.6% for the week, the Dow Jones Industrial rose 121.18 points to 15,354.40. The Nasdaq Composite advanced 33.72 points to 3,498.97, up 1.8% from the week-ago finish. For every stock falling, nearly three gained on the New York Stock Exchange, where 750 million shares traded. Gold prices extended their slump, approaching two-year lows, as investors continued to be drawn toward stocks, seeing little reason to hedge inflation. The yield on 10-year US Treasuries bounced around, rising above 1.95% before dipping to 1.865% and then recovering above 1.91%. One takeaway from a more uncertain US economic outlook is the increased likelihood that the US Federal Reserve will continue its bond-buying stimulus program. For the week, most major global stock indices had net gains.
