Stocks extend rally to 6 weeks after GE, Citi earnings

NEW YORK -- The numbers weren't great by normal standards but were good enough to extend a rally that began on early signs that the economy was finding some stability.

Citigroup reported a quarterly loss but was the fourth bank in a week with news that pointed toward a budding recovery in the industry. But the company, echoing comments from JPMorgan Chase on Thursday, also said loan losses are expected to continue in the months ahead.

Meanwhile, General Electric's first-quarter earnings dropped 36% as sales and profits shrank at its GE Capital financial division.

Kent Engelke, chief economic strategist at Capitol Securities Management, said the results placated investors. "If these companies didn't meet or exceed these expectations, we would have gotten killed," he said.

"I think most people realize there are still causes for concern, but maybe not causes for panic," said Carl Beck, a partner at Harris Financial Group, a Colonial Heights, Va.-based investment advisory firm.

Stocks fluctuated for much of Friday to end with slight gains. The Dow Jones industrial average rose 5.90, or 0.1%, to 8,131.33.

The Standard & Poor's 500 index added 4.30, or 0.5%, to 869.60, while the Nasdaq composite index rose 2.63, or 0.2%, to 1,673.07.

For the week, the Dow was up 48 points, or 0.6%, giving the average six straight up weeks. That's the longest streak since it rose for seven straight weeks in the period ended May 18, 2007.

The S&P 500 index posted a gain for the week of 1.5%. The Nasdaq was up 1.2% for the week and 6% for the year.