U.S. stocks closed higher for the second consecutive day, helped by strength in shares of commodity-related companies even as major retailers said they remain cautious ahead of the holiday season.  At the end of a session that lacked conviction, major stock indexes managed to reach their fresh 13-month highs.  A smaller-than-anticipated rise in industrial production also weighed on sentiments.

Waning risk appetites sent gold prices up 20 cents to a fresh all-time high of $1,139.40.  Treasuries rose, pushing corresponding yields lower.  The yield on the benchmark 10-year note slipped to 3.33% from 3.34% late Monday.  Crude prices closed above $79 per barrel.  Copper prices rose to 14-months highs on expectations that China demand will remain robust.

A perpetual decline in the value of the dollar and record low interest rates in the US have driven stocks higher as investors, seeking higher return on their investments, have sought refuge in

U.S. stocks surged to their 13-month highs Monday as a weaker dollar and a rebound in U.S. retail sales reinforced hopes that an economic recovery is indeed underway.  Stocks also got a boost after Fed chairman Ben Bernanke reiterated Fed’s intention to keep interest rates low for an extended period. 

Gold advanced 2% to fresh record highs; and the price of silver jumped 5.9%.  The initial gains in the equity prices followed strength in Asian markets yesterday.  Strength in Asia was partly helped by reports that said Japanese economy grew at its fastest pace in over two years, up 1.2% during the third quarter.  To add to the bullish mood in the region, leaders of the Asia Pacific Economic Cooperation promised to keep the stimulus measures in place.

On Monday, the 30-stock Dow Jones industrial average rose 136.49 points, or 1.33%, to 10,406.96. The broad Standard & Poor's 500-stock

Companies featured in this edition of the newsletter: ACTC, CVM, CHIP, ENZ, HYTM, IWEB, ONEZ, PHC, SIHI, SRCO

Markets continued their strong performance this week in the absence of any major market driving earnings or economic reports, as the broad based buying that characterized the previous week continued and led to gains in all of the major indices. All told, the Dow added 2.5% on the week, gaining 247 points to close at 10,270, up 17.0% on the year. The Nasdaq posted a 2.6% gain on the week, closing at 2,167 to extend its yearly gains to 37.5%, while the S&P 500 and Russell 2000 gained 2.3% and 1.0% respectively, bringing their yearly gains to 21.1% and 17.4%.

Equity markets carried the momentum from the previous week’s session, as the thin economic calendar and lack of significant earnings reports provided little incentive for investors to slow their buying activities.

U.S. stocks rose Friday, for their second consecutive weekly advance, as upbeat earnings reports from a number of companies, including Walt Disney and JC Penny, spurred optimism that the economic recovery is gaining momentum.  A dip in the value of dollar, on concerns consumer spending is likely to remain bleak, sent shares of commodity-related companies up. 

On Friday, the 30-stock Dow Jones industrial average rose 73 points, or 0.72%, to 10,270.47. The broad Standard & Poor's 500-stock index was up 6.24 points, or 0.57%, at 1,093.48. The tech-heavy Nasdaq composite index advanced 18.86 points, or 0.88%, to 2,167.88.  For the week the Standard & Poor’s 500 Index jumped 2.3% to 1,093.48.  The Dow average rose 247.05 points, or 2.5%, to 10,270.47, following its 3.2% advance the prior week.

The spike in commodities came after the greenback fell Friday on news that the trade deficit widened more than expected in

The video clips below provide a handy summary of the reports expected on the economic, financial and corporate front around the globe during the week ahead.

US: Retail results, economy in focus Retailers including Home Depot and Target will report results and key economic data will include retail sales and industrial output. Meanwhile, nine speakers from the Federal Reserve will offer their views on the economy.

Europe: Air France-KLM report Airbus owner EADS reports quarterly results along with airline Air France-KLM. In the UK luxury-goods group Burberry will provide an update.

Asia: Obama tour, data in focus U.S. President Barack Obama will tour the region, making stops in Japan and China to start

For Immediate Release

Chicago, IL – October 15, 2009 – Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week’s analysis include Limited Brands (LTD), Kohl's (KSS), Target (TGT), Ross Stores (ROST) and TJX Companies (TJX).

Zacks Industry Rank Analysis is written by Charles Rotblut, CFA, Senior Market Analyst for Zacks.com.

This week: Retailers’ Registers Are Ringing

Consumers are showing a willingness to spend, even as they watch their budgets.

On Wednesday, the Commerce Department said that retailers saw sales rose 0.5% last month, excluding motor vehicles and parts. Furniture & home furnishing stores, health & personal care stores, general merchandise stores and gasoline stations all saw increases of 0.8% or better.

(The hangover from the Cash for Clunkers program resulted in an 11.8% drop in sales at auto dealers. This skewed the overall change in retail sales down to -1.5%.)

This morning, the Commerce Department said that retailers saw sales rose 0.5% last month, excluding motor vehicles and parts. Furniture & home furnishing stores, health & personal care stores, general merchandise stores and gasoline stations all saw increases of 0.8% or better.

(The hangover from the Cash for Clunkers program resulted in an 11.8% drop in sales at auto dealers. This skewed the overall change in retail sales down to -1.5%.)

The increase may seem surprising given the economic backdrop. After all, unemployment is rising towards 10% and another wave of foreclosures could be forthcoming as adjustable rate mortgages reset. On the other hand, the majority of Americans are employed and the improving economic data is probably giving consumers some confidence, even if the sentiment surveys are less clear.

Plus, the Commerce Department's data is backed up

• China Unicom also advised iPhones will be sold in China beginning in October.  Meanwhile, Apple (NASDAQ:AAPL) said iTunes' application downloads exceeded the 2 billion mark

• MBIA's (NYSE:MBI) main bond insurance unit was downgraded by S&P to non-investment grade status

• Dell (NASDAQ:DELL) revealed a new, high-end, ultra thin PC

• Cameron International (NYSE:CAM) reported a $500 million subsea equipment deal with Petrobras

• Howard Shultz, CEO of Starbucks (NASDAQ:SBUX), offered high hopes for its Via Ready Brew instant coffee product, claiming it "perhaps the biggest opportunity" in the company's history, amid today's North American launch

• Walgreens' (NYSE:WAG) reported fiscal fourth quarter results of 47 cents ex-items, topping estimates of 39 cents, on sales of $15.7 billion

• Goldman Sachs (NYSE:GS) lifted price targets on several retailers, including conviction buys on Target (NYSE:TGT) and Macy's (NYSE:M)

• Citigroup (NYSE:C) started coverage of Dr. Pepper Snapple (NYSE:DPS) and Coca-Cola (NYSE:KO) with "buy" recommendations

• Bank of America

Stocks broke a four-day losing streak, helped by better-than-projected August sales from retailers but the advance was lukewarm as investors chose to play it safe ahead of today’s non-farm payrolls report.  After touching their 2009 highs, stocks have drifted lower this week on concerns that a major correction is in the offing.  Sentiments are also shaky as September has historically been a rough month for stocks.  

Yesterday, the 30-stock Dow Jones industrial average finished higher by 63.94 points, or 0.69%, at 9,344.61.  The broad Standard & Poor's 500-stock index rose 8.49 points, or 0.85%, at 1,003.24, closing above 1,000 for the first time since Monday; the technology-laden Nasdaq composite index gained 16.13 points, or 0.82%, to 1,983.20.  Twenty two of the thirty DJIA components advanced.

Although stocks traded in a tight range yesterday, the final hour of trading witnessed activity as traders picked up technology and financial stocks.  Better-than-expected

With a population of nearly 1½ billion people, roughly 5 times that of the United States, China represents a potential consumer base that is impossible to ignore. It’s of little surprise that the majority of American companies now report China as one of their top priorities, and that they expect to increase their associated efforts and investments. No longer is China seen only as a cheap source of manufactured goods for America and Europe. In spite of the world economic crisis, and concerns about its effect on China, evidence continues to point to China as an ultimately growing and powerful consumer market. Government reforms and improved relations still attract new business and, as a result, more American companies are looking to China for the very first time, either to buy or to sell.

But the opening up of China to the West has also resulted in something of a culture