Stocks capped a week of gains with yet another advance Friday as investors, setting aside high oil prices, focused instead on a surge in consumer confidence. The major indexes all closed the week higher.
Despite oil hitting a record (without adjustment for inflation), analysts said that wasn't cause for alarm on Wall Street, as higher energy costs haven't made a dent in corporate profits.
The Dow Jones industrial average rose for the seventh straight session, gaining 44.42, or 0.42 percent, to 10,623.07.
Broader stock indicators also advanced. The Standard & Poor's 500-stock index moved back into positive territory for the year for the first time since March 9, gaining 6.00, or 0.5 percent, to 1,216.96. The Nasdaq composite index gained 0.96, or 0.05 percent, to 2,090.11.
Despite surging oil prices, the market consistently scratched out small gains this week as the Labor Department reported declines in both wholesale and retail prices, easing Wall Street's fears of inflation. For the week, the Dow gained 1.05 percent, the S&P rose 1.57 percent, and the Nasdaq was up 1.31 percent.
Jay Suskind, head trader at Ryan Beck & Co., called the recent run "a stealth rally," saying that while the indexes advanced, the light volume through much of the week showed that many investors remained on the sidelines before the Federal Reserve's Open Market Committee meeting at the end of the month and second-quarter earnings season in July.
It was a "quadruple witching day" on Wall Street, in which investors cash in quarterly options and futures contracts, written on equities and the major indexes, and buy new ones, which likely accounted for some of the rise in stock prices. Increased volatility, widely varying stock prices and high volumes often accompany such days.
Bank of America shares rose 21 cents, to $46.64, after it said it had reached a $3 billion deal to buy a 9 percent stake in China Construction Bank.
Circuit City Stores was down 72 cents, at $16.93, after the company reported a wider-than expected first-quarter loss.
KB Home, one of the nation's largest builders, rose $5, to $77.25, after raising its forecast for the year.
Valero Energy, one of the nation's largest refiners, rose $3.26, to $79.95, after saying it expects a record quarterly profit. Energy stocks did well in general. Chevron rose $1.05, to $58.97. Unocal, which Chevron is purchasing, rose $2.23, to $63.69. And Exxon Mobil rose 77 cents, to $60.89.
New York Stock Exchange composite index rose 56.56, to 7346.32.
American Stock Exchange index fell 0.05, to 1545.96.
Russell 2000 index of smaller-company stocks rose 0.16, to 644.19.
NYSE: 1.93 billion shares, up from 1.36 billion on Thursday. Advancers outnumbered decliners 5 to 3.
Nasdaq: 2.04 billion shares, up from 1.82 billion. Decliners narrowly outnumbered advancers.
Crude oil for July delivery: $58.47, up $1.89.
Gold for current delivery: $438.30 a troy ounce, up from $436.20 on Thursday.