Stocks inch higher as strong week closes

NEW YORK -- A stunning about-face in bank shares handed the stock market its best week since November.

The market has shot up as much over the past several days as it might in some years, with major indicators chalking up gains of around 10%.

Friday's gains were modest compared with the huge rallies on Tuesday and Thursday, but investors welcomed the moderate buying and the market's ability to hold its ground. Several other recent rallies have ended with disappointing sell-offs.

Fears have eased that the nation's major financial institutions would collapse or at least require additional government lifelines to stay alive. Market veterans were quick to rein in hopes that the market would chart an uninterrupted recovery but many still saw the four straight days of gains a good sign.

"The biggest question for investors now is, 'Have we put in the lows and is it safe to get back into the water?' " said Michael Sheldon, chief market strategist at RDM Financial Group.

The Dow Jones industrial average rose 53.92, or 0.8%, to 7,223.98. The Dow hasn't put up four straight gains since late November.

For the week, the Dow jumped 9%, its best week since rising 9.7% in the week ended Nov. 28.

Other market indicators also gained. The Standard & Poor's 500 index rose 5.81, or 0.8%, to 756.55. The Nasdaq composite index rose 5.40, or 0.4%, to 1,431.50.

The S&P 500 index added 10.7% for the week and the Nasdaq rose 10.6%.

The Dow Jones Wilshire 5000 index, which reflects nearly all stocks traded in America, jumped 10.7%. That's a paper gain of about $900 billion.

Still, the Dow and the S&P 500 index are still down by about half from their peak in October 2007.