NEW YORK — Stocks on Friday closed higher for the week, with bullish sentiment curbed a bit ahead of a long weekend that’s expected to include resolution on another round of financial aid to Greece.
“The market is betting there is not going to be a disorderly default in Greece, but there is still some caution ahead,” said Nick Raich, director of research with Key Private Bank in Cleveland.
Eurozone finance ministers will meet in Brussels on Monday, when U.S. markets are closed for the Presidents Day holiday. While a second financial package for Greece is expected to be approved, negotiations have been known to unravel in the recent past.
“Despite the continuing saga over the second Greek bailout, U.S. economic data this week was just enough to fall in love with. Data showed that the U.S. manufacturing sector is still powering along. Strong housing starts also raised hopes for a more encouraging recovery in the housing market this year. Finally, Congress extended the payroll tax cut, leaving some extra cash for people to spend this year,” noted Beth Ann Bovino, deputy chief economist at Standard & Poor’s.
Within reach of the 13,000 milestone last hit in mid-2008, the Dow Jones industrial average rose 45.79 points, or 0.4 percent, to 12,949.87, a 52-week high and its highest close since May 19, 2008. The blue chips finished with a weekly rise of 1.2 percent.
Up 1.4 percent from the week-ago close, the S&P 500 Index gained 3.19 points, or 0.2 percent, to 1,361.23, with the consumer discretionary rising the most among its 10 industry groups and health care taking the hardest hit.
The Nasdaq Composite fell 8.07 points, or 0.3 percent, to 2,951.78, leaving it up 1.7 percent on the week.
“We continue to be encouraged by recent domestic economic data flow,” said Fred Dickson, chief investment strategist at Davidson Cos., referring to Thursday’s decline in jobless claims to a near four-year low.
On Friday, U.S. economic data on consumer prices for January supported the Federal Reserve’s view that inflation remains in check.
