By Victor Reklaitis and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch)--U.S. stocks closed with modest gains
Friday in light trading, building on weekly and monthly advances,
as largely upbeat U.S. economic data offset overseas worries.
The S&P (SPX) rose 6.63 points, or 0.3%, to close at
2,003.37 for its 32nd record close this year.
The Dow Jones Industrial Average(DJI) gained 18.88 points, or
0.1%, to end at 17,098.45. The blue-chip gauge stands just 0.2% off
its July 16 record close.
The Nasdaq Composite(RIXF) tacked on 22.58 points, or 0.5%, to
4,580.27. The tech-heavy index finished at its highest level since
March 29, 2000.
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 the
"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. Total
composite volume on Thursday was at its lowest level for a full
trading day, and Friday's volume was only slightly higher. "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 bench mark's best August
performance since 2000. The S&P 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) finished up
7.5% at an all-time closing high, 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% at an all-time closing high.
(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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