NEW YORK (TheStreet) -- Signs of an improving U.S. economy and that the worst has passed for Europe are allowing the most economically sensitive stocks to spread their wings again.
The Morgan Stanley Cyclical Index -- made up of companies whose fortunes are deeply tied to the state of the economy -- has soared 11% this year, led by companies such as Alcoa and Sears Holdings. Furthermore, the S&P 500 has risen 4% so far this year after closing almost unchanged in 2011. All this, as corporate prospects begin to improve in the eyes of the investor, and companies show the results of the critical reforms they implemented while waiting out a period of tepid operating conditions.
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