Stocks rally on additional signs of economic health

NEW YORK - Investors are taking the numbers and running with them.

Stocks jumped again yesterday, giving the Dow Jones industrials their sixth straight advance, as investors got more robust earnings news from big companies and data that suggest the economy is closer to a recovery. News that the commercial lender CIT had struck a financing deal that will keep it out of bankruptcy also drove the market higher.

A 100-point gain pushed the Dow back into the black for the year, while the Standard & Poor's 500 climbed to its highest finish since November.

The market also got good economic news.

A surprisingly large rise in a predictor of future economic activity also supported stocks. The Conference Board's index of leading economic indicators rose 0.7 percent in June, more than the 0.4 percent forecast. It was the third straight month of gains.

Among the companies reporting earnings yesterday was toy-maker Hasbro Inc., which beat the market's expectations and helped reassure investors somewhat about consumers' willingness to spend.

The Dow rose 104.21, or 1.2 percent, to 8,848.15, its sixth straight advance, the longest set of gains since a seven-day rise in April 2007.

The Dow is up 35 percent from its March low but still down 37.5 percent from its record of 14,164.53 in October 2007.

The S&P 500 index rose 10.75, or 1.1 percent, to 951.13, its best finish since Nov. 5.

The Nasdaq composite index rose 22.68, or 1.2 percent, to 1,909.29, its ninth straight advance. The index is at its highest mark since Oct. 3, during the most furious selling of the credit crisis.

Among the earnings news, Hasbro's profit rose 5 percent, beating expectations, as strong U.S. revenue offset international sales hurt by the stronger dollar. The stock gained 4.2 percent, rising $1.07 to $26.45.

Oilfield-services company Halliburton Co. said its profit tumbled 48 percent amid sluggish exploration and production activity, but the results were better than analyst forecasts, and its shares rose 95 cents, or 4.4 percent, to $22.33.

With the bulk of earnings reports still to come, the market has yet to hear from some key industries, including retailing. If those results are disappointing, it could force investors to rethink their most recent rally. Several factors are still hanging over the market, including record-high unemployment and a damaged housing market.

Yesterday, the CIT news and optimism over better earnings reports stoked investors' appetite for risk. Investors moved out of safer assets like U.S. Treasurys and the dollar, and into riskier bets like commodities. CIT jumped 55 cents, or 79 percent, to $1.25.

The Russell 2000 index of smaller companies rose 7.74, or 1.5 percent, to 526.96.

Overseas, Britain's FTSE 100 rose 1.3 percent, Germany's DAX index rose 1 percent, and France's CAC-40 gained 1.6 percent. Japanese financial markets were closed for a holiday.