Updated with closing stock prices .The major stock averages each locked in 7% gains for the week after a final mixed session that featured earnings reports from General Electric ( GE), Citigroup ( C) and Bank of America ( BAC). The Dow Jones Industrial Average rose 32.13 points, or 0.4%, to 8743.94, while the S&P 500 was down 0.36, or 0.04%, at 940.38. The Nasdaq Composite added 1.58 points, or 0.08%, to 1886.61. Stocks rallied for the better part of the week after a batch of strong earnings -- from the likes of Goldman Sachs, JPMorgan Chase and Intel ( INTC) -- offset worries about unemployment and consumer sentiment that have plagued stocks in recent weeks. "You had the bears really pounding their chests saying we're breaking lower, we're going to go back down to 800, maybe even the March lows, and people got a little scared," says Ryan Detrick, senior technical analyst at Schaeffer's Investment Research. "And then you have some positive news on the horizon in the form of earnings and it's one of the best weeks." While stocks were relatively tame Friday, the Dow advanced 7.2%, the S&P added 7%, and the Nasdaq was 7.4% higher for the five day session. The end-of-week lull doesn't worry Schaeffer's Detrick. "A little bit of a break is more than warranted, and the fact that we're not selling off today as of now ... is probably an encouraging sign really," he says. (Click below to hear Detrick break down recent earnings and this week's market action.)
General Electric was the worst performer on the index, losing 6.1%, as investors were little impressed by a not-as-bad-as-expected 47% decline in profit and a roughly 17% drop in revenue. Wall Street was also not taken with Google ( GOOG) despite an earnings beat. The internet search shop -- which traded 2.8% lower -- said the cost per click, or the amount advertisers pay for a click on an ad, rose 5% from last quarter but was still down roughly 13% year over year. Citigroup shares were about 0.3% higher after it posted a second-quarter profit of $4.3 billion. But that includes an $11 billion pre-tax gain from its joint venture with Morgan Stanley for the Smith Barney brokerage. Bank of America also beat the Street view with its quarterly profit but reported continuing losses from failed loans.
The indices were lethargic most of the day but moved briefly higher after Reuters reported that troubled small business lender CIT Group ( CIT) is in talks with JPMorgan Chase ( JPM) and Goldman Sachs ( GS) for short-term financing that could help it to avoid a bankruptcy filing. New data on Friday also offered some support to the bulls as building permits and housing starts for June both increased more than expected. The Department of Commerce said there were 563,000 new building permits, up from 518,000 the month prior and expectations for 524,000. There were 582,000 housing starts, up from an upwardly revised 562,000, also topping expectations for 530,000. Homebuilder stocks KB Home ( KBH) and Hovnanian Enterprises ( HOV) were 4.2% and 3.3% higher, respectively.
Stocks overseas were mostly higher. In Europe, London's FTSE 100 and the Dax in Frankfurt rose by 0.6% and 0.4%, respectively. In Asia, the Nikkei in Japan and Hang Seng in Hong Kong rose 0.6% and 2.4%, respectively. Crude oil futures rose $1.54 to $63.56 a barrel. Gold rose $2.10 to $937.50 an ounce. The dollar was stronger vs. the pound, euro and yen. Longer-dated Treasuries were rising in price, falling in yield. The 10-year was up 8/32 to yield 3.57%, while the 30-year rose 20/32, yielding 4.45%.