Good News, Stocks Up | featured news

Stocks are shaking off a two-week slump after a report on retail sales wasn't as bad as economists had predicted... The government said Tuesday that retail sales edged down 0.2 percent last month, the first decline in nearly a year. That was slightly better than analysts were expecting. Americans bought fewer cars during the month, but the decline reflected temporary supply chain disruptions caused by the earthquake and tsunami disaster in Japan. Excluding weak car sales, retail sales rose 0.3 percent.

World markets are also up as investors look past worries about the American economy and Europe’s debt crisis.

Caterpillar drove the Dow Jones industrial average higher Friday after the company reported a huge gain in first-quarter earnings. The world's largest maker of mining and construction equipment rose 2.5 percent after its earnings increased more than five-fold. The company also raised its sales and profit forecast for the year.

U.S. stocks rose, sending the Standard & Poor’s 500 Index to its highest level since June 2008, as companies from United Parcel Service Inc. to Ford Motor Co. and 3M Co. beat analysts’ profit estimates.

The blue chips kicked off the second quarter with solid gains on optimistic economic data after capping the best first quarter in more than a decade.

Upbeat economic data, and slipping oil prices, sparked a broad rally Thursday, lifting the blue chips to their biggest percent gain since December. 

Some investors found reasons to be optimistic in Mr. Obama’s proposal to cut corporate taxes and increase spending for education, innovation and infrastructure.

Stocks started 2011 with a big lift on Monday, and that could be a promising sign for the rest of the year.

Europe's sovereign debt crisis will still hang over global markets this week, but on Wall Street, investors will not be afraid to bet on stocks.

Job growth in the U.S. and signs of global manufacturing expansion sent stocks sharply higher Wednesday. Bond prices and the dollar fell as investors moved money into riskier assets.