By Victor Reklaitis and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch)--U.S. stocks closed with modest gains
Friday in light trading, building on their weekly and monthly
advances, as largely upbeat U.S. economic data appeared to outweigh
overseas worries.
The S&P (SPX) rose 6.62 points, or 0.3%, to close at
2,003.36 for its 32nd record close this year, according to
preliminary data.
The Dow Jones Industrial Average(DJI) gained 18.75 points, or
0.1%, to end at 17,098.32, while the Nasdaq Composite(RIXF) tacked
on 22.58 points, or 0.5%, to 4,580.27.
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 received 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 warned against reading too much into Friday's action, as many
traders were on vacation ahead of Labor Day weekend. "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's best August in 14 years: The S&P 500 gained 3.8%
for the month, representing the benchmark's best August performance
since 2000. The S&P 500 also achieved its largest monthly
percentage jump since February, when it rose 4.3%.
For the week, the S&P 500 tacked on nearly 0.8%. The Dow
scored advances of 0.6% for the week and 3.2% for the month, while
the Nasdaq climbed 0.9% for the week and 4.8% 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.
The S&P and Dow notched for their fourth up week in a row,
representing their best streak since an eight-week advance in
October and November.
Movers and shakers: Avago Technologies Ltd. (AVGO) closed up
7.5%, 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) finished up 0.2%.
(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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