Stocks posted solid gains as the Federal Reserve’s bond-buying program fueled demand for riskier assets including the euro and commodities. Bank of America rose 1.6% on the day and was up 8.5% this week, bolstered by the Fed’s decision. Also, U.S. retail sales rose 0.9% along with the cost of living in August, both reflecting increased costs for gasoline. Industrial production contracted 1.2% in August, while consumer confidence unexpectedly brightened to 79.2 in September, with climbing stocks and home prices helping to bolster sentiment and offset escalating gasoline costs. Apple gained 1.20%, to a new record high, on early signs of robust demand for the iPhone 5. In the evening trade Electronic Arts shed 1.7% following developments related to a dispute between the the co. and Zynga Inc. Next week housing data will take center stage. Investors will digest reports on mortgages, housing starts, building permits and existing home sales, Empire State manufacturing index and Philly Fed index. Also, FedEx, Adobe Systems, Bed Bath & Beyond and Oracle are scheduled to report earnings. Implied volatility inched lower on massive trading volumes.
