By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks turned higher on Friday,
with the S&P 500 on track for a seventh monthly gain, as
investors sorted through mixed economic reports.
Equities shed their losses and turned higher after the release
of the Thomson Reuters/University of Michigan's final index of
consumer sentiment, which climbed to 84.5 for May, topping
forecasts and the highest level since 2007.
"The consumer sentiment is very encouraging for the market
overall; we had a quick bounce when that number came out," said
J.J. Kinahan, chief strategist at TD Ameritrade.
After falling as much as 60 points and rising as much as 62, the
Dow Jones Industrial Average (DJI) was lately up 56.48 points at
15,380.93.
The S&P 500 index (SPX) climbed 3.82 points to 1,658.23,
with utilities and technology faring best and consumer staples and
energy hardest hit among its 10 industry groups.
"I think bulls would consider it a victory to come out of today
with even a small loss. There has been so much pressure from Asia
all week and yet the S&P has hung in there," said Kinahan.
The U.S. dollar (DXY) on Friday fell to a three-week low against
the Japanese yen (USDJPY) , with the American currency on track for
an eighth straight month of gains versus the yen. Expectations of
monetary easing moves by the Bank of Japan is expected to result in
further softening of Japan's currency.
The Nasdaq Composite (RIXF) gained 8.94 points to 3,500.23.
For every three stocks rising, four fell on the New York Stock
Exchange, where nearly 200 million shares traded as of 11:20 a.m.
Eastern.
Composite volume neared 1.1 billion.
Casting the largest chunk of the U.S. economy on uncertain
footing, the Commerce Department on Friday reported household
purchases declined 0.2% last month, following a 0.1% rise in March;
incomes were static.
Equity futures held their drop after the spending report.
Separately, the Chicago PMI jumped to 58.7 in May, its best
reading in more than a year.
Dell Inc. (DELL) rose 1% as founder Michael Dell, the computer
maker's board of directors and its private-equity partners faced a
lawsuit by shareholders contesting Dell's effort to take the
company private.
Dell on Friday urged shareholders to vote for the $24.4 billion
buyout offer led by CEO Dell at a special meeting July 18, calling
it better than other options.
Among movers, Krispy Kreme Doughnuts Inc. (KKD) climbed after
the doughnut maker beat first-quarter profit and revenue estimates
and raised its outlook for the year.
U.S. stocks gained on Thursday as reports on economic growth and
jobless claims heightened thinking that the Federal Reserve would
continue its level of monthly bond purchases.
The central bank's monetary easing is a major factor in the bull
market, now in its fourth year.
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