Consumers, deals lift stocks

Stocks surged higher yesterday as the latest round of takeovers prodded investors to continue a months-long buying streak.

The Dow registered its 24th record close this year and the S&P 500 came within striking distance of its record high.

A reading that was stronger than expected on consumer sentiment helped investors set aside some concern that higher gas prices would force consumers to pull back on spending.

The mood of consumers remains vitally important since that spending accounts for two-thirds of economic activity.

The Dow rose 79.81 yesterday to 13,556.53, and set a new intraday trading high of 13,558.48. The S&P 500 rose 10 to 1,522.75, its highest level in more than six years. That's less than 5 points from a record close of 1,527.46, set in March 2000. The Nasdaq gained 19.07 to 2,558.45.

For the week, the Dow rose 1.73% and the S&P 500 gained 1.12%. The Nasdaq fell 0.15%.

Also, the yen rose from an almost three-month low against the dollar after China allowed its currency to strengthen at a faster pace and lifted interest rates to cool an overheating economy.

A rising Chinese currency would make Chinese imports less competitive in the U.S.
Source : http://www.nydailynews.com