U.S. stocks rise for the first time in two weeks
U.S. stocks rose, halting a two-week slump, as an almost $1 trillion aid package for indebted European nations triggered the biggest daily rally in a year and drove up shares of Boeing, Caterpillar and Apple.
The Standard & Poor's 500-stock index pared its weekly gain Friday on concern the plan won't solve the debt crisis. Boeing and Caterpillar, which rose more than 4.4 percent for the week, helped manufacturers lead the market's rally, while Apple jumped 7.6 percent. Morgan Stanley lost 2.4 percent as New York Attorney General Andrew Cuomo subpoenaed the firm and seven other banks to see whether they misled credit-rating firms on mortgage-backed securities, a person familiar with the situation said.
The S&P 500 gained 2.2 percent to 1135.68. The Dow Jones industrial average advanced 239.73 points, or 2.3 percent, to 10,620.16, rebounding from the 628.18-point retreat the prior week.
"The recovery is in place," said Jeff Saut, the chief investment strategist at Raymond James & Associates, which manages $230 billion in St. Petersburg, Fla. "U.S. economic fundamentals are good. European issues pose a problem for Europe. I don't think it compromises the global recovery."
The S&P closed at a 19-month high of 1,217.28 April 23 before retreating on concern that budget deficits in Greece, Portugal and Spain will curtail global economic growth. Stocks fell Friday even after U.S. government reports showed retail sales rose 0.4 percent in April, twice the median economist estimate.
The Treasury will sell $26 billion of three-month bills and the same amount of six-month securities on Monday. The size of the May 18 auction of four-week bills has yet to be determined.