Stocks Close at 13-Month Highs

NEW YORK (TheStreet) -- The major indices hit new highs for 2009, and the S&P 500 closed above the 1,100 barrier after the Federal Reserve Chairman Ben Bernanke said little to halt the rally and hours after the government released a report showing strong retail sales last month.

The Dow Jones Industrial Average rose 136 points, or 1.3%, to 10,407. The S&P 500 gained 16 points, or 1.5%, to 1109, as the Nasdaq advanced 30 points, or 1.4%, to 2198. All three indices reached their highest closing levels since October 2008.

Gains in transportation, energy and metal stocks helped buoy the indices today. The Dow Jones Transportation Average, the Amex Oil Index, the NYSE Energy Index and the Philadelphia Gold and Silver Index rose 2.2%, 1.7%, 2.1% and 2.9%, respectively.

Financial stocks slumped late after bank analyst Meredith Whitney, during an interview on CNBC, said she hasn't been as bearish in a year. Whitney said there is no fundamental grounds for the rise in many equities, and said the banking space is not well capitalized. The KBW Bank Index tracked back from session highs, finishing up by 1.1%.

Bernanke spoke to the Economic Club of New York around noon EST on Monday. Billed as a speech on the economic outlook, the Fed chairman echoed familiar themes, saying he expects "moderate economic growth to continue next year."

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"My own view is that the recent pickup reflects more than purely temporary factors and that continued growth next year is likely," says Bernanke, according to a transcript. "However, some important headwinds -- in particular, constrained bank lending and a weak job market -- likely will prevent the expansion from being as robust as we would hope."