U.S. stocks edge up, score gains for the week Maj

U.S. stocks edge up, score gains for the week
Major indexes at multiyear highs; jobs data up Fed stimulus view
http://articles.marketwatch.com/2012-09-07/ma...s-data-vix
U.S. equities finished modestly higher Friday, with major indexes scoring gains for the week to end at their highest levels in years as lackluster August jobs data fueled speculation that the Federal Reserve may start another round of monetary stimulus.
“The recent market rally has been the result of massive short-covering and anticipation of more liquidity courtesy of the Fed,” said Jeffrey Sica, president and chief investment officer of Sica Wealth Management. “The jobs report of today reinforces the likelihood of more economic stimulus being initiated in the September meeting.”
But “the market celebration will be short-lived as investors question whether another round of money printing is too little or too late to help the economy,” he added.
The Dow Jones Industrial Average (US JIA) rose 14.64 points, or 0.1%, to 13,306.64. The blue-chip benchmark closed at its highest level since December 2007, with a 1.7% gain for the week.
Of the 30 Dow components, half finished higher. Shares of Caterpillar Inc. (US:CAT) rose 3.9% and Bank of America Corp. (US:BAC) added 5.4%, leading the gains on the index, while Kraft Foods Inc. (US:KFT) saw the biggest decline, down 5.5% after providing an outlook for its grocery business. Read more on Kraft.

The S&P 500 Index (US:SPX) rose 5.8 points, or 0.4%, to 1,437.92, closing up 2.2% from a week ago. It marked its highest close since January 2008. Of the 10 sectors in the index, consumer stocks led decliners, while materials led advancers.
Within the index, mining and steel companies were standouts, finding support from fresh merger talks, demand from China and higher commodity prices. Alpha Natural Resources Inc. (US:ANR) shares rose 17% to take the top spot among advancers on the S&P 500. Read more on mining-stock rally.
“While it looks like stocks didn’t move all that much, underneath the averages there is a lot of bullish price action under way,” said Michael Gayed, chief investment strategist at Pension Partners LLC.
“High beta small-cap stocks continue to meaningfully outperform, the VIX [CBOE Market Volatility Index] (US:VIX) continues to price poorly and defensive sectors, which money flees to in times of fear, are collapsing,” he added. “Fear over a 2008 repeat is now turning into fear of global monetary shock and awe, and the potential inflationary aspects of it.”

The Nasdaq Composite Index (US:COMP) inched up 0.6 point to 3,136.42, tacking on 2.3% for the week to log its highest finish since November 2000. Shares of Green Mountain Coffee Roasters Inc. (US:GMCR) jumped 13% after Lazard Capital started coverage on the stock with a buy rating. Read more on Green Mountain.
Lululemon Athletica Inc. (US:LULU) (CA:LLL) shares rose more than 12%. The apparel retailer reported better-than-expected results for the second quarter and raised its outlook for the year. Read about Friday’s biggest movers.