NEW YORK — U.S. stocks erased Friday losses to tally their fifth week of gains, sending the Standard & Poor’s 500 to a four-month high, with disappointing Chinese trade data advancing hopes for further moves to bolster the global economy.
“It’s Europe, China and the U.S. as the three big worries,” said Sandy Lincoln, chief market strategist at BMO Asset Management U.S.
Noting the price-to-earnings expansion that has taken place in the large-cap defensive sectors, Lincoln said the market in recent weeks has seen a rotation back to more economically sensitive components.
Assuming we muddle through on the big three , Europe, China and the U.S., the next shift could have investors moving from the economically sensitive large-cap companies to the smaller capitalized, Lincoln noted.
After a 70-point drop, the Dow Jones industrial average ended up 42.76 points, or 0.3 percent, at 13,207.95, led by Hewlett-Packard. It rose 0.9 percent for the week. At five straight weeks, the blue-chip average is in its longest winning streak since October.
The S&P 500 ended up 3.07 points, or 0.2 percent, to 1,405.87, with telecommunications the best performer. The index ended at its highest level since April 3 and extended gains for sixth straight session. The S&P has risen 10 percent since June 1.
The Nasdaq composite rose 2.22 points, or 0.1 percent, to 3,020.86 and ended up 1.8 percent for the week, its fourth straight week of gains.
Recent gains can be chalked up to “just words with nothing more,” said Peter Boockvar, equity strategist at Miller Tabak in New York, referring to talk from central bankers, which has inspired hope of further moves to bolster the global economy,
The U.S. dollar edged lower against other global currencies, including the euro. Oil prices fell, with futures for September delivery losing 49 cents, or 0.5 percent, to $92.87 a barrel.
“We’ve been talking about the tug of war for a while of the slowing global economy on the one hand, and central bankers trying to fight it tooth and nail on the other hand,” Boockvar said.
