Economy, Stock Market | featured news

Americans spent briskly during the early spring months in the latest sign that they’re encouraged by the economic recovery. Falling gas prices, a rallying stock market and gains in the job market all fueled Americans’ shopping habits even as cold weather tempered their desire to buy spring fashions.

China's campaign to cut a huge backlog of initial public offerings has failed to deliver. Now there are signs that the authorities could be preparing to reopen the IPO floodgates.

Gold headed for its biggest two-day drop in 30 years on Monday as funds accelerated their exits from the market, and investors also cut exposure to oil, copper and grain after underwhelming Chinese growth data.

The Dow Jones industrial average has reached another milestone, recording its longest winning streak since 1996. The index rose for the 10th time in a row Wednesday, gaining 83 points to close at 14,539, an increase of 0.6 percent.

To quell the latest financial crisis, the Federal Reserve smashed interest rates to the floor by buying bonds with money it effectively prints. Since 2008 assets on the Fed’s balance sheet, including those bonds, have tripled, to $3 trillion. (Hey, people needed encouragement, and low rates are encouraging.) The mixed results: Entrepreneurs and homeowners got some relief, while savers got whacked along with the value of the U.S. dollar. Starving for yield, investors piled into stocks, pushing the Dow Jones Industrial Average to its all-time high, absent inflation.

U.S. retailers are posting moderate sales for February, dealing with mixed signals like payroll-tax increases and later income-tax refunds that were countered by a rousing stock market and better housing reports.

Despite everything, the stock market is back at a record high. The Dow Jones industrial average, which measures the performance of 30 blue-chip companies, rose more than 140 points in afternoon trading on Tuesday, surpassing its previous record close of 14,164.53, which it achieved nearly five and a half years ago, as well as its record intraday high, set around the same time, of 14,198.10.

Talk of more merger and acquisitions is sending stock prices slightly higher in early trading, setting the market up to continue a seven-week rally.

Japan's stock market is experiencing a rally unmatched since bulls ruled in the 1980s, as a weak yen and expectations of much bolder steps by the central bank draws investors into the long-dormant market.

The Dow rose higher and briefly topped 14,000 Friday, hitting a milestone not seen since before the financial crisis rocked the world economy.