U.S. stocks rallied Friday, ending the week at their best levels in several years, after the Federal Reserve (Fed) announced new stimulus measures Thursday. In U.S. economic news, the Census Bureau reported that retail sales rose 0.9 percent in August, which was higher than expected. The Bureau of Labor Statistics said August inflation was in line with analysts' expectations, with the Consumer Price Index increasing by 0.6 percent. The Fed's data on industrial production for August showed a steeper-than-expected drop of 1.2 percent, while the preliminary edition of the University of Michigan's Consumer Sentiment Index for September came in higher than expected. Data on July business inventories from the Census Bureau also exceeded forecasts. In company news, shares of homebuilders, including PulteGroup, Toll Brothers, and Hovnanian Enterprises continued to soar on the Fed's mortgage buying program's announcement. Big banks Citigroup, JPMorgan Chase, Bank of America, and Goldman Sachs were also among the top gainers. Apple shares hit another all-time high two days after the company unveiled the latest edition of the popular iPhone. The dollar fell against the euro and the pound, but rose versus the yen. Light sweet crude oil for October delivery gained 69 cents to $99 a barrel on the New York Mercantile Exchange. Gold futures increased 60 cents to $1,772.70 an ounce. The Dow, the S&P 500, and the Nasdaq all posted gains between 1.5 percent and 2.3 percent for the week. The S&P 500 is at its highest point since the end of 2007, while the Nasdaq has not been at its level since late 2000. The Dow Jones industrial average rose 53.51, or 0.40 percent, to 13,593.37. The broader Standard & Poor's 500 index gained 5.78, or 0.40 percent, to 1,465.77. The technology-heavy Nasdaq composite index increased 28.12, or 0.89 percent, to 3,183.95.
