NEW YORK (TheStreet) -- U.S. stocks drifted higher early Friday afternoon in one of the slowest trading days of the year ahead of the three-day Labor Day weekend. Equities remained on track for their fourth straight weekly gain, bolstered by good economic data and speculation about European Central Bank stimulus.
The Dow Jones Industrial Average (^DJI) rose 0.03% to 17,084.45. The S&P 500 (^GSPC) was up 0.23% to 2,001.27. The Nasdaq (^IXIC) ticked up 0.37% to 4,574.36.
Watch the video below for a look at how U.S. markets are doing in midday trading Friday:
"If the ECB does refer to quantitative easing, that means more liquidity in the world markets as well. In retrospect we benefit from that in terms of easy money," said Peter Cardillo, chief market economist at Rockwell Global Capital.
Denting sentiment somewhat, the U.K. raised its terror threat level to "severe" in response to intensifying armed conflict in Syria and Iraq.
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Generally upbeat U.S. economic numbers on Friday added to the positive surprises of Thursday's results. The final reading on the Reuters/University of Michigan consumer sentiment index for August provided an upward revision to 82.5, beating expectations of 80.2. Even though the latest consumer spending number disappointed, readings on consumer confidence keep improving.
The Chicago PMI jumped to 64.3 in August from 52.6 in July. U.S. personal income rose 0.2% in July, slightly less than the consensus 0.3%, the Bureau of Economic Analysis reported before the market open. Consumer spending fell 0.1%.
The S&P is now on track for its biggest monthly gain since February, in many ways a surprise considering the escalation of geopolitical concerns the market was focused on at the beginning of the month. "All of a sudden, those concerns were placed on the sidelines as the economic data continued to show the economy improving. It certainly turned out to be a heck of a lot better than we expected," Cardillo remarked.
U.S. stocks fell Thursday as investors fretted about renewed geopolitical risks after Ukraine President Petro Poroshenko's statement that Russia has invaded Ukraine.
In individual corporate news Friday, Tesla (TSLA) tacked on 2.44% to $270.19 after the electric carmaker partnered with China Unicom to build 400 charging stations in 120 cities across China. Big Lots (BIG) was down 2.14% to $46.19 after reporting slightly lower-than-expected second-quarter revenue. Same-store sales increased 1.7%, in the middle of its guidance of a rise of 1% to 3%.
The Guggenheim CurrencyShares Euro Trust (FXE) was down 0.3% to $129.62 and the Guggenheim CurrencyShares Japanese Yen Trust (FXY) was off 0.32% to $93.65 on expectations of further stimulus measures by the Bank of Japan and ECB and some anticipation that the Federal Reserve will raise interest rates sooner than expected.
--By Andrea Tse in New York