Stock Rally Shows More Stamina

Stocks extended their rally on Friday, as recent momentum upward has continued
without much specific bad news to derail financial markets. The Dow Jones
Industrial Average gained 50 points to 12,221, the Nasdaq added 7 points to 274,
and the S&P 500 rose 4 points to 1314. The S&P 500 has now climbed 5.1% since an
intraday low of 1249 touched on March 16. While crude oil has all of a sudden
become one of the least volatile assets around, the absence of a spike in oil
prices has still had a big role in allowing stocks continue to move higher in an
otherwise low-volume atmosphere. This also meant returning small-caps to a
leadership position for at least one day: the Russell 2000 outperformed on
Friday with a 0.8% gain. And it has meant some more upside to the sectors that
didnt do so hot when markets were tumbling amid the runup in oil prices and
adjoining fears about consumer discretionary spending. Recreational product
stocks were among the best sectors on Friday Brunswick (NYSE: BC ) gained 6.4%,
while fitness equipment maker Nautilus (NYSE: NLS ) added 4%. The automaker
segment also added a smidge onto huge gains Thursday. The Dow Jones U.S.
Automobiles Index managed to close at its highest level in March quite an
accomplishment considering oil still hangs above $105 a barrel. Whatever
contribution higher stock prices make to investors overall feeling of global
economic recovery has also been seen in the precious metals trade. Gold was down
for a second straight day, and even silver dropped back a half step. With little
confirmation on Friday from stocks outside the U.S., the chances seem slim that
another 5% runup in stocks is on tap. On the other hand, if the current state of
global uncertainty can no longer tear down stocks, what can?