By Rick Glaze

The S&P 500 hit a four-year high last week closing up 1.33 percent while the Dow Jones Industrial Average gained 1.83 percent and the Nasdaq rose 2.08 percent.

Government economic data was positive last week with wholesale-price inflation flat for June and stripping energy and food and the core rate, slightly negative.

Industrial production surged 0.9 percent in June which was the biggest jump in 14 months.

Oil dropped below $60 per barrel and retail sales numbers were strong, fueling the positive move in stocks.

The U.S. dollar finished higher compared to most major currencies, a result of the strong economic data.

Small company stocks as measured by the Russell 2000 gained 1.60 percent for the week and remain ahead of their large cap brethren for the year.

Earning season is almost upon us so investors will have an eye on the profit picture later in the month.

Technical analysts make a science out of reading stock charts and predicting future results.

While the S&P 500 has hit a four year high, the Dow Jones Industrial Average has not and therefore some analysts fear it is a negative sign.

But these so called “confirmations” can take time and most agree that the longer-term technical picture is positive.

Technology stocks were led by semiconductors to higher ground with the Philadelphia semiconductor index breaking through to a new 52-week high.

The nation’s economy is expected to grow at an average of 3.3 percent for 2005, a slower pace than the 3.9 percent in the previous year.

This is still respectable, considering it is close to the 25-year historical average growth rate for the country.

Rick Glaze is the president of Glaze Capital Management, Inc. of Los Altos and is a registered representative offering securities through First Allied Securities, Inc.