By Victor Reklaitis and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch)--U.S. stocks edged up Friday in light
trading, building on their weekly and monthly gains, as mostly
upbeat U.S. economic data appeared to outweigh overseas
worries.
The S&P (SPX) rose 5 points, or 0.2%, to 2,001, reclaiming
the milestone level of 2,000. The benchmark is trading above
Wednesday's record close at 2,000.12, but below its intraday record
of 2,005.04 hit Tuesday.
The Dow Jones Industrial Average(DJI) gained 5 points, or less
than 0.1%, to 17,085, while the Nasdaq Composite(RIXF) tacked on 17
points, or 0.4%, to 4,574.
Readings on consumer sentiment and Chicago-area business
conditions surpassed expectations, though the Commerce Department
reported an unexpected dip in consumer spending. In overseas news,
Russian President Vladimir Putin lashed out at Ukraine, and U.K.
authorities warned a terror attack is highly likely.
What strategists are saying: Stocks are getting a lift from a
"quite good" reading on consumer sentiment, and investors also may
be anticipating a strong August jobs report next week, said James
Liu, global markets strategist at J.P. Morgan Funds.
He also warned against reading too much into Friday's action, as
many traders are on vacation ahead of Labor Day weekend. Total
composite volume on Thursday was at its lowest level of the year
for a full trading day. "Next Tuesday we'll find out what people
really think about the market," Liu told MarketWatch.
Stocks are likely to keep advancing through year's end thanks to
earnings growth, though gains won't be as strong as in the past few
years, said David Lafferty, chief markets strategist for Natixis
Global Asset Management. "Our outlook is for stocks to continue to
grind higher," he told MarketWatch.
S&P eyes best August in 14 years: The S&P 500 had gained
3.4% for the month as of Thursday's close, and if that holds it
would represent the bench mark's best August performance since
2000. The S&P 500 is also on pace for its largest monthly
percentage jump since February, when it rose 4.3%.
For the week, the S&P 500 is up 0.7%. The Dow is on track
for advances of 0.5% for the week and 3.2% for the month, while the
Nasdaq is eyeing climbs of 0.8% for the week and 4.7% for
August.
"We've had more waves, but the underlying current is still
pretty good," said Lafferty of Natixis. The waves in August have
included Europe weakening and Russia-Ukraine worries, but the U.S.
has seen largely positive economic data and "pretty solid"
second-quarter earnings, he said.
"It was a very strong month in terms of performance," said Liu
at J.P. Morgan Funds. Investors waiting for a relatively steep drop
before buying didn't get what they wanted, he noted. The S&P
500 pulled back 4% from late July to early August, then rallied to
new records.
Movers and shakers: Avago Technologies Ltd. (AVGO) climbed 8.7%,
performing best among S&P 500 stocks.
Wall Street analysts raised their price targets for the Apple
supplier in the wake of another better-than-expected profit report
and ahead of the coming iPhone 6 launch. Shares in Apple Inc.
(AAPL) were up 0.2% after hitting an intraday record.
(Read more about Friday's jumpiest stocks in the Movers &
Shakers column
http://www.marketwatch.com/story/splunk-rallies-freds-to-close-60-stores-2014-08-29.)
Other markets: European equities finished slightly higher, while
stocks in Asia closed mixed. Oil prices (CLV4) gained, while gold
(GCZ4) moved lower. The dollar (DXY) edged up against most
rivals.
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