* Market rises on consumer survey, profit optimism
* Citi, GE post better-than-expected results
* Dow up 0.1 pct; S&P 500 up 0.5 pct; Nasdaq up 0.2 pct
* For up-to-the-minute market news click [STXNEWS/US]
(Adds volume in last two paragraphs)
By Ellis Mnyandu
NEW YORK, April 17 U.S. stocks rose on Friday,
capping the S&P 500's longest weekly winning streak since 2007,
helped by a reassuring report on the mood of consumers and
stabilization in General Electric (GE.N) and Citigroup's (C.N)
The Reuters/University of Michigan survey showed that U.S.
consumers have more confidence in the economy than they have
had since the sudden collapse of Lehman Brothers in September,
the latest in a spate of data suggesting the economic slump may
be easing. For more details, see [ID:nN17323537]
GE and Citigroup both posted better-than-expected results,
lifting the broader market, and bank stocks rallied as
investors bet other financial companies could follow up with
more news showing the sector is on the mend.
Among banks, shares of Bank of America (BAC.N), due to post
quarterly results on Monday, climbed 2.5 percent to $10.60. The
KBW Bank index .BKX climbed 3.4 percent and has come close to
more than doubling since its March lows. GE shares gained
almost 1 percent to $12.39.
"The rate of deceleration in the economy is slowing," said
David Lutz, managing director of trading at Stifel Nicolaus
Capital Markets in Baltimore.
"From a macro standpoint, the reason for a lot of the drive
is just that we're continuing to get data points that show
things are beginning to operate very well in the credit
The Dow Jones industrial average .DJI rose 5.90 points,
or 0.07 percent, to 8,131.33. The Standard & Poor's 500 Index
.SPX climbed 4.30 points, or 0.50 percent, to 869.60. The
Nasdaq Composite Index .IXIC added 2.63 points, or 0.16
percent, to 1,673.07.
The surge capped the S&P 500's longest weekly winning
streak since spring 2007 and added to its strong recovery since
the stock market's descent to 12-year closing lows early last
For the week, the S&P 500 rose 1.5 percent, the Dow climbed
0.6 percent and the Nasdaq gained 1.2 percent.
The benchmark S&P 500 is now up more than 28 percent since
the bear market closing low of March 9. Its year-to-date drop
has narrowed to about 4 percent.
On Nasdaq, a 1.6 percent gain in the shares of Apple
(AAPL.O), the maker of the iPhone and iPod, underpinned the
technology sector's advance ahead of Apple's quarterly results
"Apple is probably going to have positive things to say,"
Apple's stock closed at $123.42, while Google (GOOG.O)
gained 0.9 percent to $392.24, a day after posting a
stronger-than-expected quarterly profit.
Also underpinning the market's advance were the gains in
the shares of companies seen better able to withstand economic
Shares of fast-food company McDonald's Corp (MCD.N) rose
2.5 percent to $56.09 after its chief executive told CNBC that
he saw "some thawing" in economic conditions. The stock gave
the top boost to the Dow.
Deutsche Bank said Procter & Gamble (PG.N),
Colgate-Palmolive (CL.N), Kimberly-Clark Corp (KMB.N) were
undervalued at current levels. P&G rose 2.4 percent to $51.66,
making it the Dow's second-biggest advancer, while shares of
diversified health-care company Johnson & Johnson (JNJ.N)
added 1.6 percent to $53.05.
Profit-taking ahead of the weekend, however, tempered some
of the upside, according to traders.
Citigroup reported a smaller-than-expected first-quarter
loss, but its shares dropped almost 9 percent to $3.65 as some
investors paused following the stock's strong run-up since
early last month when the bank said, along with others, it had
had a good start to 2009.[ID:nN17310824]
Trading was active on the New York Stock Exchange, where
about 1.95 billion shares changed hands, above last year's
average daily volume of 1.49 billion. On the Nasdaq, about 2.42
billion shares traded, above last year's average daily volume
of 2.28 billion.
Advancers outnumbered decliners by a ratio of about 2 to 1
on both the NYSE and Nasdaq.
(Editing by Jan Paschal)