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Stock rally continues, investors buy into market leaders

Stock rally: NYSE and Nasdaq see advancing stocks outnumber declining ones while S&P 500 doubles in record time. Dip in stock rally causes investors to buy into market leaders.

By Rodrigo CamposReuters / February 18, 2011

Stock rally: Is the bull on Wall Street making a comeback? The stock rally in recent months has the NYSE and Nasdaq making gains, and S&P 500 making quickest 100 percent gain since the Great Depression.

Melanie Stetson Freeman/Staff/File


U.S. investors piled on a dizzying two-year advance in stocks on Thursday, using a brief slip on negative economic news as an opportunity to buy into market leaders.

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The technology sector showed strength, with Nvidia Corp (NVDA.O) up 9.8 percent to $25.68 a day after posting a bullish revenue forecast on accelerating sales of its processors.

An index of semiconductors' shares .SOX gained 1.4 percent and is now up 21.3 percent since early December, around the time when the most recent leg of the run-up started.

The S&P energy sector .GSPE gained 0.8 percent. U.S. crude futures jumped 1.7 percent as unrest in the Middle East kept focus on supply, boosting shares of energy companies.

Futures had dipped early in the session after data showed both a rise in consumer prices and new claims for unemployment benefits, but the dip didn't last long after the open.

"People have been focusing on the positives like the outlook for corporations and a good earnings season," said Brian Lazorishak, a money manager at Chase Investment Counsel in Charlottesville, Virginia.

Stocks continued to ignore Iran's intention to send two navy vessels through the Suez Canal to the Mediterranean in a move Israel has called a "provocation".

"Geopolitical issues have been pushed aside, maybe prematurely," Lazorishak said.

The S&P 500 has doubled its value in less than two years, the quickest 100 percent gain since the Great Depression. However, volume has been light in the most recent leg of the rally, with just 6.7 billion shares changing hands Thursday on the New York Stock Exchange, NYSE Amex and Nasdaq combined -- the second-lowest so far in 2011.

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