By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks edged up on Friday and
aimed for their third straight weekly advance. Another
weaker-than-expected economic report, this one for existing-home
sales in January, was blamed on the especially harsh winter and
didn't dent sentiment.
The S&P 500 (SPX) was last up 5 points, or 0.3%, to 1,845,
led by utilities and materials. The benchmark index is on pace for
a weekly gain of 0.4%.
The Dow Jones Industrial Average (DJI) rose 41 points, or 0.3%,
to 16,174, with Microsoft Corp. (MSFT), Nike Inc. (NKE) and
McDonald's Corp. (MCD) faring best among Dow components and all up
more than 1%. The blue-chip index showed a 0.1% advance for the
week.
The Nasdaq Composite (RIXF) added 14 points, or 0.3%, to 4,282.
The tech-heavy index is on track for a weekly advance of 0.9%.
All three indexes are working on a third straight weekly gain.
Stocks have bounced back from a slump in late January and early
February, putting the S&P 500 just below its Jan. 15 record
close of 1,848.38.
Investors lately have looked past a slew of disappointing
economic reports, attributing them to the particularly bad winter
weather that's hit much of the U.S. On Friday, existing-home sales
in January showed a bigger-than-expected decline, but unusually
poor weather may have played a role, the National Association of
Realtors said.
But there is a challenge presented by how stock investors have
reacted to weak data, according to Steven Wieting, global chief
investment strategist for Citi Private Bank.
Markets "that have looked over the valley to a stronger period
of U.S. growth ahead, may not have to 'tilt up' when that recovery
from weather-related weakness becomes apparent," Wieting said in a
client note on Friday.
Nonetheless, Citi Private Bank still predicts moderate gains for
U.S. stocks. Wieting said his bank's "expectation for a roughly 7%
gain in U.S. market earnings per share, low interest rates and
growing dividends leaves us expecting further U.S. market gains, if
more modest than 2013."
Follow MarketWatch's live blog of Friday's stock-market
action
On Thursday, U.S. stocks closed higher, as traders found
encouragement in data showing U.S. manufacturing activity jumped to
its highest level in almost four years, shrugging off downbeat
reports from the Philadelphia Federal Reserve, China and
Europe.
Two Federal Reserve speakers were scheduled to speak later
Friday. Dallas Fed President Richard Fisher is slated to talk at
12:45 p.m. Eastern, while St. Louis Fed President James Bullard
will speak at 1:10 p.m.
Among individual stocks, Groupon Inc. (GRPN) slid 16% after the
daily-deals company late Thursday delivered a disappointing
outlook.
Hewlett-Packard Co. (HPQ) fell 1.2%, as the PC and printers
maker cut short an early rally on its upbeat results.
Priceline.com Inc. (PCLN) climbed 3.2% after late Thursday
reported fourth-quarter results that exceeded expectations.
In other financial markets, European stock markets traded
higher, following a mostly upbeat session in Asia. Metals prices
rose, while oil prices suffered as the dollar gave up gains against
major rivals.
More must-reads from MarketWatch:
Panera Bread is blaming, yes, the weather, and the market seems
to agree
Google was reportedly willing to outbid Facebook for
WhatsApp
Most retailers on sideline despite Obama's nudge to raise
minimum wage
You're invited to ... Bitcoin: Boom and Bust
Subscribe to WSJ: http://online.wsj.com?mod=djnwires