By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks rose Friday, with the S&P 500 set to end the choppy week nearly flat, trimming losses. Economic data released ahead of the bell showed consumer spending and incomes rose broadly in line with forecasts.

Consumer spending rose in February at the fastest rate since November as Americans spent more on health care and utilities, but in a negative sign, purchases of big-ticket items fell for the third straight month. Personal income also ticked up in February.

The S&P 500 (SPX) rose 17.20 points, or 0.9%, to 1,866.26, paring almost all of the weekly losses. Health care and consumer discretionary sector stocks were leading the broad-based gains.

The Dow Jones Industrial Average (DJI) jumped 145.15 points, or 0.9%, to 16,402.79. Nearly all members of the index were trading higher, with Microsoft and Merck leading the rest.

The Nasdaq Composite (RIXF) gained 49.26 points, or 1.2%, to 4,200.68. The tech-heavy index is set to record a weekly loss after sharp declines earlier in the week.

Follow MarketWatch's live blog of Friday's stock-market action.

"Today's economic data was as expected, but compared to the last few months there is an improvement, suggesting that the economy's slowdown this year is weather-related and temporary," said Kate Warne, investment strategist at Edward Jones.

"This was enough good news for stocks to go higher this morning," Warne added.

As the first quarter of the year approaches the finish line with only two trading sessions left, portfolio managers are busy adjusting their positions. Typically, the end March tends to be volatile.

Next week will offer a barrage of economic data, which is expected to have less weather-related distortions and provide a better view of the economy.

Separately, consumer sentiment declined to a final March reading of 80 -- the lowest level since November -- from a final February level of 81.6, according to a Friday report on a gauge from the University of Michigan and Thomson Reuters. A preliminary March reading pegged the level at 79.9. Economists polled by MarketWatch had expected a final March level of 81. Economists watch sentiment levels to get a feeling for the direction of consumer spending. Read: Spotlight on the economy.

A final Fed speaker of the week will come at 1:15 p.m. Eastern, when Kansas City Fed President Esther George delivers a speech about the economy and Fed policy. George is not a voting member of the Federal Reserve's policy-setting committee this year.

In corporate news, BlackBerry Ltd. (RIMM) shares rallied 5.3% after reporting an adjusted per-share loss that was less than expected. The company said it anticipates maintaining a strong cash position and is targeting break-even cash-flow results by the end of fiscal 2015.

Finish Line Inc. (FINL) rose 3.4% after the athletic-gear retailer reported its fiscal fourth-quarter earnings rose 25%.

Amazon.com Inc. (AMZN) shares were up 1% after reports that the company plans to offer free streaming television and music videos to its customers. The firm had previously planned to charge for the members-only service, reported The Wall Street Journal. Amazon has denied the reports.

Shares of Restoration Hardware Holdings Inc. (RH) jumped 13% after the high-end home furnishings retailer topped Wall Street estimates and issued a healthy outlook.

There are also a number of initial public offerings. CBS Outdoor Americas (CBSO) rose 7.7% on the first day of trading.

Elsewhere, Asian markets ended the week mostly higher after Chinese Premier Li Keqiang's latest comments, which some analysts interpreted as a hint of upcoming easing measures to aid the slowing economy. Li said China should pay great attention to the problems and difficulties in the economic development and shouldn't overlook "downward risks," according to state-run Xinhua News Agency.

The positive mood also helped lift European equities, with all major national benchmarks trading in positive territory. Gold prices were under pressure again, oil prices rose (CLK4), while the dollar (DXY) moved slightly higher.

More must-reads from MarketWatch:

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