rising U.S Stocks this week

U.S. stocks rose this week, sending benchmark indexes to their biggest gains in a month, amid improved economic data and the efforts of the European central banks to contain the crisis in the region of the debt.

Home Depot Inc. rose 8 percent, the biggest gain in the Dow Jones Industrial Average, as construction spending and home sales exceeded economists' estimates. Bank of America Corp. and JPMorgan Chase & Co. advanced at least 5.6 percent after Goldman Sachs Group Inc., recommends financial stocks. Abercrombie & Fitch Co. rose 16 percent, its biggest weekly advance since July, after same-store sales rose.

500 of Standard & Poor's rose 3 percent, to 1,224.71 within five days of yesterday, its biggest gain in four weeks. The Dow Jones rallied 290.09 points, or 2.6 percent, at 11,382.09. The gauge of 30 stocks had their biggest gain in two days from July 1 to 2 December, rising 3.2 percent.

"In Europe it seems some of the recent flare on the continent would disappear and the markets reacted positively," said Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC, which oversees more than $ 50 billion in Philadelphia. "There are signs of improvement, but the economy is not completely out of danger. The market will be subject to setbacks."

The S & P 500 is 20 percent this year low in July, after the companies reported earnings higher than estimated and the Federal Reserve announced a second round of purchases of Treasury to abolish interest rates and revive growth . Goldman Sachs investment strategist David Kostin said the S & P 500 could increase to 1,450 by the end of next year as economic recovery accelerates. U.S. Bank David Bianco raised his 12-month target for the rate of 1,350 to 1,400.

ECB bailout

U.S. equities advanced as the ECB policy makers kept the benchmark interest rate at a record low of 1 percent and delayed the departure of the bank of the emergency liquidity measures such as debt crisis threatens to engulf Portugal and Spain . Ireland on November 28 became the second country to take advantage of EU aid, after Greece. Received a rescue package worth € 85000000000 (112 million dollars).

Home Depot, the largest U.S. retailer home improvement, up 8 percent to $ 33.48, its biggest weekly advance since July 2009. U.S. Commerce Department said construction spending rose 0.7 in October, driven by higher residential development projects in six months. The median estimate of economists surveyed by us called for a drop of 0.3 percent.

Record Increase

Homebuilders advanced after a report said Americans signed contracts to buy existing homes in October, sending the index of pending home sales a record increase of 10 percent. Lennar Corp., the U.S. construction company third largest, gained 15 percent to $ 17.26, its biggest one-week rally in seven months.

The S & P 500 fell to 0.4 percent yesterday after the Labor Department said the unemployment rate rose to 9.8 percent from 9.6 percent. The benchmark index then recovered with commodity prices, ending the day with a gain of 0.3 percent. The report also said that U.S. payroll increased by 39,000 last month, behind the median forecast of economists in a survey of an increase of 150,000 jobs.

"There has been a separation between the lack of health and labor market conditions very positive for corporate balance sheets. This is not surprising." Said David Sowerby, a field Hills, a fund manager based in Michigan Loomis Sayles & Co., which oversees $ 150 billion. "The benefits traditionally rebound before making labor markets. If this were to persist for two or three months and combined with a drop in the ISM's manufacturing sector, then investors are more worried."

ISM Report

A December 1 report showed the manufacturing index of the Institute for Supply Management fell to 56.6 in November from 56.9 in October. Readings above 50 signal expansion.

Financial shares rose after Goldman Sachs said banks exceed the market next year due to "stronger economic growth, greater equity investment environment and an environment more favorable interest rates." Marshall & Ilsley Corp. met 18 percent to $ 5.60 for the biggest gain in the S & P 500. Bank of America rose 6.7 percent to $ 11.86 after three straight weeks of declines. JP Morgan rose 5.6 percent, to $ 39.61.

Abercrombie & Fitch had the second biggest advance in the S & P 500, rising 16 percent to $ 56.15. The teen apparel retailer said sales at stores open at least a year rose 22 percent in November. Analysts on average had expected an increase of 6.4 percent, according to Retail Metrics Inc.

Kroger Co., the U.S. supermarket chain who had the biggest drop in a year on December 2 after lowering the upper end of its earnings forecast for the year, fell 8.5 percent $ 21.11, the biggest drop in the S & P 500 . Barclays Plc lowered its rating to "equal weight" from "overweight."

The benchmark for options on U.S. stock fell over this week since May. The VIX, as the Chicago Board Options Volatility Index is known, fell 19 percent to 18.01. The index, which measures the cost of using options to hedge against S & P 500 declines, fell after jumping 23 percent last week.