Last updated 11:11 a.m. ET

Stocks soared again Friday, a day after reaching multiyear highs on news that the Federal Reserve would launch more stimulus measures. U.S. economic data on Friday helped boost stocks.

The Dow Jones Industrial Average ($INDU) was up 64 points at 13,604. The S&P 500 ($INX) was up 9 points at 1,469. The Nasdaq Composite ($COMPX) was up 32 points at 3,188.

The Fed announced Thursday it will begin a third round of quantitative easing, hoping to breathe life into the economy, and particularly jump-start the labor market. The dollar continued to weaken against major currencies after the Fed's announcement.

Bank of America (BAC) led financials higher for the second session in a row following the Fed's announcement. Also, energy stocks such as ExxonMobil (XOM) and Chevron (CVX) are higher as crude trades near $100.

The Fed's easing measures
On top of promising to keep interest rates at "exceptionally low levels" until mid-2015, the Fed will buy at least $40 billion a month in mortgage-backed securities to ensure that rates stay low. The Fed will also continue to reinvest proceeds from maturing securities it already owns. Together, both programs will increase the Fed's holdings of longer-term securities by $85 billion a month.

The Fed will continue to purchase assets, and purchase even additional assets, until the labor market's outlook has improved. In the past six months, Fed Chairman Ben Bernanke said, job growth has been week, and he wants to see a much stronger growth.

What about inflation?
Critics charged that Bernanke and the central bank have lost track of the Fed's other objective -- price stability -- and that the measures could spark inflation. Wholesale prices rose in August mainly because of a surge in energy prices.

On Friday, the Labor Department said U.S. consumer prices increased by 0.6% in August, in line with economists' expectations, as gasoline prices rose by the largest amount in more than three years. Gas prices surged 9% last month, while food prices rose just 0.2%.

Excluding food and energy costs, which tend to be volatile, the core price index rose 0.1%, below the 0.2% increase economists had expected, according to Briefing.com. With CPI rising and wages stagnant, average hourly earnings for U.S. workers fell 0.7% in August.

Consumer prices have climbed 1.7% over the past 12 months and 1.9% on a core basis, within the Federal Reserve's 2% target for inflation.

More economic data
Retail sales in the U.S. increased by 0.9% in August, the most in six months, boosted by demand for autos and higher gasoline prices, as well as back-to-school sales. While that is better than the 0.7% rise economists had expected, according to Briefing.com, it points to only modest growth in the third quarter. The Commerce Department also revised the July figure lower to 0.6% from 0.8%.

Industrial production fell 1.2% in August, its biggest monthly percentage drop in more than three years, in part because of Hurricane Isaac but also because of a big drop in car output. That was also well below economists' expectation for a decline of 0.2%. The decline in industrial production causes concern about the recovery of this sector in the economy.

Consumer sentiment climbed higher in September to 79.2, the highest level since May, according to reports on the University of Michigan-Thomson Reuters consumer-sentiment gauge released Friday. Economists had expected the index to decline to 73.5 from the final August reading of 74.3. While higher than expected, the index is well below its pre-recession levels.

Business inventories increased 0.8% to a record $1.59 trillion in July, posting their largest gain in six months, boosted by an increase in automobile stocks, according to the Commerce Department. Economists had expected a 0.4% rise, according to Briefing.com. Inventories are a key component of gross domestic product changes, and July's increase could be a sign of growth.

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Global markets follow US rally
Asian shares posted a strong rally Friday after the Fed's launch of QE3. Interestingly, Asian countries may be less likely to enact loosening measures of their own after the Fed's move. South Korean equities also got a boost after Standard & Poor's upgraded the country's long-term credit rating by one notch to A+.

European markets also rallied Friday, as they played catch-up with North American markets. The Fed's move comes a week after the European Central Bank announced an unlimited bond-buying plan, and a day after a German court allowed the country to ratify the eurozone's rescue fund.

Meanwhile, investors will also be watching for any news about Europe's sovereign debt crisis as European finance ministers meet in Cyprus.

Stocks to watch
UnitedHealth Group (UNH) will join the widely followed 30-stock blue-chip index, the Dow Jones Industrial Average, replacing Kraft Foods (KFT). Kraft is leaving the index because of its plan to spin off its North American grocery business, which will be renamed the Mondelez Group on Oct. 1. The change will become effective with the opening of trading on Sept. 24.

The Dow Jones Averages Index Committee said in a statement that it believes Kraft's plan will "reduce market capitalization" and revenue, making the company "less representative of the U.S. large cap market space."

Apple (AAPL) shares advanced even after they again on Thursday closed at an all-time high of $682.98. The computer and gadget maker on Wednesday unveiled its latest smartphone, the iPhone 5, which adds many of the features that have become standard with high-end smartphones. Investors hope it will help Apple regain lost ground to Samsung and other smartphone makers that use the Google (GOOG) Android system. Already, MarketWatch says, preorders for the phone may have sold out.

Amazon (AMZN) shares also closed at an all-time high.

Is Home Depot (HD) giving up on China? The home improvement retailer said it will close all seven of its big-box stores and cut 850 jobs in the country.

Shares of Staples (SPLS) advanced after a report by Fortune that several private-equity firms, including Bain Capital, are considering a buyout offer for the office supplies retailer.