Stocks Continue Rally on Retail Data

Retailers were also in focus, with many of the nation's chain stores reporting better-than-expected monthly results. Wal-Mart, the world's biggest store operator, said same-store sales -- those at locations open a year or longer -- climbed 3.9% in May, excluding fuel sales, and its shares were up 2.2%. Total sales advanced 9.8% to $31.04 billion. Wal-Mart stock was tacking on 3.2% to $59.50.

TJX (TJX Quote), which operates the T.J. Maxx and Homegoods chains, said comps were up 2% in May. That figure jumped 9% at Costco (COST Quote) last month, as well. TJX shares added 2.1%, and Costco rose 3.1%.

"It's hard to extrapolate how much of that is due to the Bush administration's helicopter checks," said Dickson, "but some of it is obviously making its way through."

The government's tax-rebate checks, aimed at rousing the sluggish U.S. economy, began shipping out in last month.

"The administration is certainly putting a lot of hope in that," said Zaro. "It doesn't really amount to a lot, relative to the GDP, but I think those little bits and pieces, if you will, are important for the psychology of the market."

Meanwhile, Target (TGT Quote) said last month's comparable sales eased 0.7%, and Gap (GPS Quote) reported a 14% drop, and shares of both were edging down lately following a bit of strength earlier. Limited (LTD Quote) saw mixed trading on word of a 6% comps decline. Lately, shares lost 1.5%.

Over in the financial space, Deutsche Bank's Mike Mayo recommended buying Lehman Brothers (LEH Quote) stock, saying that "worst-case scenarios" are already baked into the price. A Bernstein analyst kept his market perform rating on the stock.