What a Week: Bulls Run

"Buy the dips" aptly describes the stock market's message this holiday-shortened week.

The dips were fleeting on the path to the S&P 500 setting its first record since March 2000 and the Dow Jones Industrial Average hitting its 26th of 2007. This was particularly true on Wednesday, when early weakness linked to a China selloff was wiped out by aggressive afternoon buying after the release of the minutes of the Federal Reserve's May 9 policy meeting.

Largely on the basis of Wednesday's rise, the Dow rose 1% this week while the S&P 500 gained 1.3% and the Nasdaq Composite rose 2.3%, its best week since late March.

On Friday, the S&P rose 0.4% to 1536.34, its third straight record close, while the Dow gained 0.3% to 13,667.95 -- a record after setting an all-time intraday best of 13,692. The Nasdaq rose 0.4% to 2613.92, far from its March 2000 record but a 6 1/2-year high.

Friday's gains came in the wake of stronger-than-expected reports on non-farm payrolls and ISM manufacturing, as well as a dip in the year-over-year rate in the core personal consumption expenditures index.

Also buoying stocks Friday was a positive reaction to Dell's (DELL Quote) earnings and planned cutbacks, as well as news that the Bancroft family is willing to discuss News Corp.'s (NWS Quote) $60-per-share offer for Dow Jones (DJ Quote).