April 11 (Bloomberg) -- U.S. stocks extended a four-day rally as retailers gained after reporting improving sales and jobless claims dropped more than forecast. The dollar weakened against most major peers as investors bet global central-bank stimulus will bolster demand for higher-yielding assets. The Standard & Poor’s 500 Index added 0.5 percent to 1,594.8 as of 11:02 a.m. in New York and extended this week’s gain to 2.6 percent, its best advance since the beginning of the year. The U.S. currency was lower against 15 of 16 major peers and the Dollar Index dropped 0.5 percent to trade near the lowest level in more than a month. European stocks rose for a fourth day. Italy’s 10-year yield rose two basis points to 4.33 percent, reversing earlier declines triggered when borrowing costs fell at an auction. Ross Stores Inc. and Limited Brands Inc. helped lead a rally in retailers as the S&P 500 climbed to an intraday record for a second straight day. Claims for U.S. jobless benefits declined by 42,000 to 346,000 last week, unwinding a surge caused by the Easter holiday and spring break at schools. The fewest number of Americans in five years rated the U.S. economy as “poor,� according to the Bloomberg Weekly Consumer Comfort Index. “You really have a lack of reason to sell this market,� Bill Schultz, chief investment officer who oversees about $1.1 billion at McQueen Ball & Associates in Bethlehem, Pennsylvania, said by phone. “A lot of investors may have missed part of this rally and they feel compelled to jump back into this market.� Record Rally The S&P 500 climbed 1.2 percent yesterday to a record as a report showed China’s imports grew faster than economists forecast in March and investors speculated earnings will beat estimates. The gauge has more than doubled from its 12-year low in March 2009, helped by the Federal Reserve’s unprecedented bond purchases and three straight years of profit growth. Equities have risen in 2013 as individual investors made deposits with money managers and professional speculators closed bearish bets. A gauge of hedge-fund bullishness measuring how much they’re betting on rising shares reached 51.6 percent yesterday, up from 47.3 at the end of 2012, according to data compiled by International Strategy & Investment Group. Since the bull market began four years ago, the S&P 500 has gained 1.7 percent on average in the first two weeks after Alcoa Inc. marked the start of the quarterly earnings season, according to data compiled by Bloomberg. Analysts predict earnings fell 1.8 percent in the first three months of the year, according to a Bloomberg survey on April 5. The projection compared with an estimate for a 1.9 percent drop seen on April 1, marking the first improvement in the survey this year. Earnings have beaten estimates every quarter since 2009. Earnings Season The earnings season picks up tomorrow when JPMorgan Chase & Co. and Wells Fargo & Co., the biggest U.S. banks by market value, report results. Retailers in the S&P 500 advanced 1.5 percent as a group, for the second-biggest gain among 24 industries. Bed Bath & Beyond Inc. climbed 1.4 percent today after forecasting an increase in first-quarter sales. Computer and software makers slumped after personal-computer shipments in the first quarter plunged the most since at least 1994 and Goldman Sachs Group Inc. downgraded Microsoft Corp. shares. Microsoft and Hewlett- Packard Co. lost more than 4.5 percent. Ashmore Assets About three stocks gained for every one that declined in the Stoxx 600. Ashmore Group Plc, a U.K. fund manager that invests in emerging markets, rallied 13 percent today, the most in four years, as assets under management increased. Man Group Plc, the world’s largest publicly traded hedge-fund manager, jumped 7.5 percent after regulators cut the amount of capital it must hold.

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