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Consumers power rally to fourth week

Friday, May 17, 2013 - 02:12

May 17 - Summary of business headlines: Jump in consumer sentiment, leading indicators propel Wall Street to fourth up week, Dow and S&P 500 at new heights; Jim Rogers sees correction in gold continuing. Conway G. Gittens reports.

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Consumers put the pizzazz back into the Wall Street rally, leading stocks to their fourth straight weekly gain. The Dow jumps 121 points to close at a record 15,354. The S&P 500 gains 17 points settling at a record of 1,667. The Nasdaq rallies 33 points. For the week: Blue chips galloped 1.6 percent and the Nasdaq 1.8 percent. Consumer attitudes took a turn for the better in early May. The Thomson Reuters/University of Michigan consumer sentiment index rebounding to a near six-year high. More consumers are feeling better about their personal finances than any time since the financial crisis. Most of the jubilation was from those with higher incomes. In another positive sign, a predictor of future economic activity jumped to a five-year high. Both reports countered some of the more downbeat signals in recent weeks. The improving economy keeps talk alive of a Federal Reserve that could cut back some of the historic stimulus sooner than people think. That speculation put a spring in the step of the dollar and in turn sent gold tumbling for a seventh day in a row. Noted investor Jim Rogers doesn't think the sell-off in gold is over. SOUNDBITE: JIM ROGERS, CEO, ROGERS HOLDINGS (ENGLISH) SAYING: "Gold hasn't corrected for 12 years, not a proper correction for 12 years, so it needs - this overdue. I welcome this. Even though I own gold I welcome this because maybe then we'll hit maybe a solid final bottom and then the bull market can resume." Spot gold - falling to its lowest close in a month. Taking a quick look at some story stocks, Tableau had a banner debut after ringing the opening bell; the data analysis software company surging about 64 percent. Boeing: the Dreamliner 787 will be back up in the air on Monday. UnitedContinental is operating a flight from Houston to Chicago. Shares of Boeing jumped to highs not seen since 2007. On to Europe now, a pan-European index rallied for the fourth straight week - and yes the DAX set another lifetime closing peak.

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Consumers power rally to fourth week

Friday, May 17, 2013 - 02:12