Wall Street Closes Sharply Higher, but Posts Weekly Loss

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NEW YORK, May 14 Reuters Wall Street ended higher at the close of a broad rally, an upbeat conclusion to whipsaw week of buying and selling as signs of a rebounding economy did battle with mounting inflation jitters.

All three major U.S. indexes built on Thursdays gains, which saw SP 500 notch its biggest oneday percentage bump in over a month.

Today everything is going up day because everyone is buying, said Chuck Carlson, senior vice president at Wealthspire Advisors, in New York. Its a buy everything day.

Still, the indexes suffered their biggest weekly declines since late February.

This week, given the big swings, is more evident of a traders environment than a longterm investors environment, Carlson added. Its a market looking for its next sustained impulse to the upside.

Those big swings were stoked by economic data, which fanned concerns that nearterm price spikes could translate into longterm inflation, despite assurances to the contrary from the U.S. Federal Reserve.

Inflation continues to be the biggest concern, Carlson added. And when interest rates didnt go to new highs the bulls take over and investors are willing to step in and buy some of the stocks that had been beaten up this week.

Economic data showed retail sales growth stalling and consumer sentiment dipping as prices remain on an upward trajectory, suggesting that while the demand boom might be taking a breather, inflation has not.

But in an indication that economic activity could…

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