Dow at highest since December 2007 as stocks cap weekly advance

SAN FRANCISCO (MarketWatch)
U.S. stocks finished higher Friday, with the benchmark indexes posting gains for the week and closing at their highest levels in years after August jobs data raised the prospects for another round of monetary stimulus by the Federal Reserve
The Dow industrials closed up 14.64 points, or 0.1%, at 13,306.64, its highest since Dec. 2007
The Nasdaq Composite edged up by 0.6 point to 3,136.42, its highest since Nov. 2000, and the S&P 500 ended 5.8 points, or 0.4%, higher at 1,437.92, its highest since Jan. 2008
"While it looks like stocks didn't move all that much, underneath the averages there is a lot of bullish price action under way," said Michael Gayed, chief investment strategist at Pension Partners LLC
"High beta small-cap stocks continue to meaningfully outperform, the [CBOE Market Volatility Index] continues to price poorly, and defensive sectors, which money flees to in times of fear, are collapsing," he said
"Fear over a 2008 repeat is now turning into fear of global monetary shock and awe, and the potential inflationary aspects of it."