NEW YORK (Reuters) - The S&P 500 index on Friday closed above 1,500 for the first time in more than five years as strong earnings reports, including Procter & Gamble's, helped the benchmark extend its rally to eight days.
The winning streak is the longest in eight years and left the S&P 500 about 4.1 percent away from its all-time closing high of 1,565.15 on October 9, 2007.
The equity market's strong start this year has been attributed to solid corporate results, an agreement in Washington to extend the government's borrowing power, encouraging signs from the global economy and seasonal inflows into stocks.
Procter & Gamble
Sales of new U.S. single-family homes fell in December but rose in 2012 to the highest level since 2009, a sign the U.S. housing market turned a corner last year.
"Economic data in the U.S. has been trending higher, albeit modestly. Things are incrementally better," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.
"The market was able to move forward despite deterioration in Apple and that's also a positive."
The Dow Jones industrial average <.dji> rose 70.65 points or 0.51 percent, to 13,895.98, the S&P 500 <.spx> gained 8.14 points or 0.54 percent, to 1,502.96 and the Nasdaq Composite <.ixic> added 19.33 points or 0.62 percent, to 3,149.71.
The S&P 500 closed at its highest since December 10, 2007 and the Dow ended at its highest since October 31, 2007.
Apple shares dropped 2.4 percent to $439.88, and the iPhone maker lost its coveted title as the largest U.S. company by market capitalization to Exxon Mobil Corp
Apple's market cap fell to $413 billion, down roughly $250 billion from its September peak. Apple's fall is about equal to the entire value of Google Inc
Adding to the bullish tone, German business morale improved for a third consecutive month in January to its highest in more than six months. In addition, European banks said they will repay the European Central Bank much more than expected of the loans the bank gave them during the crisis.
"Good news in credit markets helps set the stage for (more investment in) riskier assets," Krosby said.
For the week, the Dow rose 1.8 percent, the S&P climbed 1.1 percent and the Nasdaq rose 0.5 percent. It was the fourth straight week of gains for all three indexes.
Helping to lift the Nasdaq on Friday, Starbucks
Netflix
Thomson Reuters data through Friday showed that of the 147 S&P 500 companies that have reported earnings, 68 percent exceeded expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.
Halliburton Co
About 6.2 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.
On the NYSE, more than three issues rose for every two that fell and on Nasdaq five rose for every four decliners.
(Reporting by Rodrigo Campos; Editing by Kenneth Barry)
S&P 500 vaults 1,500 as earnings cheer Wall Street
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