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U.S. stocks had their biggest weekly rally since June after President Barack Obama expressed confidence on a budget agreement with Congress and data from China to Germany bolstered optimism about global growth. All 10 groups except for utilities in the Standard & Poor’s 500 Index rose during the Thanksgiving-shortened week.

An index of homebuilders climbed 5.4 percent amid better-than-estimated housing data. Bank of America Corp. (BAC) jumped 8.6 percent after an analyst said the lender may commit as much as $10 billion to dividends and share repurchases in 2013. Salesforce.com Inc. (CRM) surged 11 percent after revenue beat estimates. Apple Inc. (AAPL) gained 8.3 percent, ending a streak of eight weekly losses. The S&P 500 advanced 3.6 percent to 1,409.15 for the week, extending its 2012 gain to 12 percent. The Dow Jones Industrial Average rallied 421.37 points, or 3.4 percent, to 13,009.68. Both gauges had the best week since June 8.

The S&P 500 began the week with the biggest advance in two months after Obama met with senior Democrats and Republicans on Nov. 16 for talks to avoid a so-called fiscal cliff of $607 billion in automatic tax increases and spending cuts next year. The index continued to climb after Israel and the Palestinian militant group Hamas agreed to call a halt to more than a week of air strikes and missile attacks. Data showed the first expansion in China’s manufacturing industry in 13 months and an unexpected gain in German business confidence.

The S&P 500 rallied 1.3 percent on the last day of the week, posting the best post-Thanksgiving performance since 2007, as the American holiday shopping season began. A measure of retailers in the S&P 500 rose 4.7 percent for the week. Black Friday marked the traditional beginning of the holiday shopping season in the U.S., when retailers lure customers with deep discounts.  

Bank of America rallied 8.6 percent, the most in the Dow, to $9.90. The lender has improved capital by the most among the biggest U.S. banks and could fare comparatively well after Federal Reserve stress tests, Ed Najarian, an analyst with International Strategy & Investment Group Inc., wrote in a note. The bank, which may have the equivalent of about $30 billion in capital beyond the minimum required by regulators, may dole out $5 billion to $10 billion for dividends and stock buybacks next year, he wrote.           [Bloomberg]

Financial markets across the world were generally optimistic about a euro zone finance ministers meeting on Monday which is pushing for international lenders to release emergency aid and stem the region's debt crisis.           [Reuters]