U.S. stocks rise, log best week in nearly a year

(MarketWatch) -- U.S. stocks climbed Friday, capping their best week in nearly 12 months, as optimism ahead of the second-quarter earnings season powered a strong rebound from the market's worst levels this year.

The Dow Jones Industrial Average (DOW:DJIA) closed up 58.73 points, or 0.6%, to 10,187.72. The Standard & Poor's 500-stock index (MARKET:SPX) added 7.68 points, or 0.7%, to close at 1,077.93.

Alcoa Inc. (NYSE:AA) rose 2.1% ahead of its second-quarter report due Monday, and put in the best performance of a Dow component this week.

The four-day rally represents a bounce back after the Dow sank last week to its lowest point since October in its worst five-day performance leading up to July 4 since 1896.

The Dow has climbed 5.3% this week, its best weekly performance since the week ended July 17, 2009. The rally comes as investors have grown hopeful that the market's recent drop to 2010 lows may have exaggerated expected effects on corporate earnings from the slumping euro and slower global growth. (more)