The stock market rallied this week, as companies began to release their first-quarter earnings results. The reports mixed, so far trickled out alongside new economic data on employment, housing and mortgages that didn t overwhelm but did show improvement over this time last year. Taken together, the reports left investors leaning bullish. Even after the Friday selloff in financials, the Dow closed the week above the psychologically important 11000 level, its first weekend above that benchmark in about 18 months.

Now, investors may be facing some turbulence. Earnings season can be a volatile time. Stocks can rise or fall depending on whether they meet, beat or miss expectations. When Alcoa, traditionally the first Dow component to announce results, began the reporting season Monday after the market closed, the aluminum producer posted disappointing numbers and its shares fell 1.5% the next day. On the other hand, UPS said Wednesday its first-quarter earnings had jumped 33%, and the company raised its full-year guidance. On Thursday, shares closed above $68 after trading around $64 last week.

Of course, when stocks start to move, the funds that own them are also in for a ride. This week, the SmartMoney Fund Screen is dispensing with its usual format to take a closer look at how recent market activity has affected the fund universe. The tables below present a summary of how the top domestic equity fund categories have performed year-to-date and list some of the top-performing equity funds during that same time period. We do not advocate making investment decisions based on such a short time period as 12 weeks. However, this exercise may help reveal market trends that may have gone unnoticed amidst the latest headlines.

For example, if you take a quick look below, you'll find a surprising upward trend in consumer discretionary funds. Morningstar says the average fund in this sector returned 17.8% through Thursday. The global consumer discretionary category includes stocks like Toyota, Disney and Home Depot. An investment in one of these funds is a bet on consumers opening up their wallets and spending in particular areas. One of the top funds in this sector is Fidelity Select Leisure. It has returned 21.59% this year, thanks to a 22.4% stake in McDonald s and other top holdings like Yum Brands, Carnival and Starwood Hotels.

Industrials, real estate and financials followed behind the consumer discretionary sector, in terms of returns. Real estate and financial funds were some of the hardest hit in the downturn. Although their rise in the first quarter doesn t signal an outright comeback, it does suggest that some investors think there might be some bargains among the carnage. Bringing up the rear were utilities, energy, communications and health funds.

Value investors are sitting pretty after the first quarter. Two sweet spots for these investors small caps and deep discounted shares performed well. Indeed, small-, mid- and large-cap value funds outperformed their growth brethren. Small-cap value funds had a particularly good run. The average small value offering is up 16.6% in 2010, a trend we discussed last week.

One big winner among small-cap value funds was Royce Opportunity. This fund is widely diversified across 272 stocks, according to Morningstar. It also owns stocks dispersed across the industry spectrum, although computer hardware and industrial materials account for 23% and 25% of the fund, respectively. The fund is up 23.3% this year because of stocks like Dillard s (+ 49%) (, Solutia (+38%) ( and Arvinmeritor (34%) (. Performance like that shouldn t come as a surprise to long-term shareholders of this fund, which has averaged an annual return of 11% over the trailing decade.

The Criteria: Below we have listed the year-to-date returns for select domestic equity fund categories as determined by Morningstar. In addition, we also have highlighted funds that greatly outdid the 9.2% year-to-date return of the S&P 500. We aren t suggesting each of these categories or funds is right for an investment. However, we do think investors are smart to stay on top of burgeoning market trends that can be gleaned from these data.