Stocks Outrun Dim Data

NEW YORK (TheStreet) -- Stocks closed solidly in positive territory on Friday, as positive earnings helped offset reports of a drop in consumer confidence and a wider trade deficit.

The Dow Jones Industrial Average rose 73 points, or 0.7%, to 10,270. The S&P 500 gained 6 points, or 0.6%, to 1093, as the Nasdaq advanced 19 points, or 0.9%, to 2168.

For the week, the Dow gained 2.5%, the S&P rose 2.3% and the Nasdaq climbed 2.6%.

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Walt Disney(DIS Quote), the best performer on the Dow, was in the spotlight after the media conglomerate reported an 18% jump in profit and beat earnings forecasts after Thursday's closing bell. Shares rose $1.39, or 4.8%, to $30.44.

Retailers were in focus, as J.C. Penney(JCP Quote) reported a 78% profit drop, earning $27 million, or 11 cents a share and falling a penny short of expectations. Sales slumped more than 3% to $4.18 billion, just matching the consensus, as the company increased its full-year earnings forecast. Shares rose $1.82, or 6.2%, to $31.21.

Abercrombie & Fitch(ANF Quote)reported a 39% profit drop showing adjusted earnings of 30 cents a share vs. a 20-cent forecast. Shares gained $3.92, or 10.7%, at $40.68.

"You have Disney, you have a couple of retailers, but it's a relatively quiet day," says Gary Flam, portfolio manager at Bel Air Investment Advisors. "The market overall for the last week or two weeks has seemed tired. The market is right up there at highs, but we are seeing rallies on lower volume."

"The bigger question is are we nearing an end to this rally, a near-term pop, or is this just a pause before the next leg higher," adds Flam.