Stocks Rise Sharply on Better-Than-Expected Data

[The Finman]

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<h2><font color=#003399>Stocks Rise Sharply on Better-Than-Expected Data</font></h2>
NEW YORK --- Stocks rose in heavy trading Friday, giving the S&P 500 and Dow their third up month in a row for the first time since late 2001, after a report showing surprisingly strong manufacturing growth in the U.S. Midwest fueled investor optimism.

For May, the Dow rose 4.4 percent, the S&P 5.10 percent and the Nasdaq 8.99 percent.

"The market continues to forecast better economic conditions again, and the feeling is that you have to be long stocks," said Peter Cardillo, chief strategist and director of research at Global Partners Securities.

Business expanded in Midwestern states in May for the first time since February, according to the National Association of Purchasing Management-Chicago index, suggesting improvement in the manufacturing sector as well as for the broader economy.

The last time the Nasdaq notched four straight months of gains was in 1999, when it rose for five months from August to December, according to Markethistory.com.

Thirteen shares rose for every 4 that fell on the New York Stock Exchange and the ratio was about 11 to 5 on Nasdaq.

The Philadelphia semiconductor index rose 1.86 percent.

Meanwhile, U.S. consumer sentiment rose for the second straight month in May as rising U.S. stock markets lifted consumer spirits, overshadowing a dismal jobs market, while Iraq war concerns faded.

Economists had forecast a rise of 0.1 percent for April.


Full Article <font color="red"><u>Here</u></font>