NEW YORK ( TheStreet) -- Stocks closed near the flat line Friday after reports of a possible attack on one of the South Korea's naval ships surfaced and after the government revised lower its latest assessment of fourth-quarter economic growth. Initial reports about a sunken South Korean naval ship mentioned the possibility that it had been hit by a North Korean torpedo, according to Reuters, which quoted a South Korean media report. Later reports, however, said such an attack was unlikely, which helped pare losses in the afternoon. The Dow Jones Industrial Average added 9 points, or 0.1%, to 10,850. The S&P 500 gained 1 point, or 0.1%, to 1167, and the Nasdaq fell by 2 points, or 0.1%, to 2395. On a listless day for stocks, the Dow still managed to move 1% higher for the week. The S&P added 0.6% since last Friday's close, as the Nasdaq went higher by 0.9%. Despite the midsession weakness, Linda Duessel, equity market strategist at Federated Investors, is very bullish on the market going forward, particularly because markets only moved higher on the passage of landmark health care reform. "We were just hoping that the S&P 500 would hold its support at 1150 and we did better than that. We got new highs this week," Duessel said, adding, "I think it's a very bullish sign." "From a technical point of view, it's really 'all clear' from 1150 to the 1250/1300 range, which is where we were on the Friday before Lehman filed for bankruptcy protection ," Duessel said. "Plus, there's probably a little performance anxiety among portfolio managers as we approach the end of the quarter. And with inflation under control, the Fed saying rates are going to stay low for an extended period, first-quarter earnings coming up and estimates being raised, it's not that hard to be bullish right now." Earlier, the third and final read on fourth-quarter gross domestic product was lower than economists expected at 5.6%. Meanwhile, March consumer sentiment , as measured by the University of Michigan's Surveys of Consumers, was unchanged from February's level of 73.6. Shifting political winds found their way to Iraq today. According to The Wall Street Journal, preliminary election results announced Friday showed former secular Prime Minister Ayad Allawi's camp squeaked past current Prime Minister Nouri al-Maliki's circle, giving it the presumptive first crack to form a coalition. In Washington, the Obama administration introduced new measures to address continued weakness in the U.S. housing market. The new measures, which are funded through the government's Troubled Asset Relief Program, will allow for the reduction of some mortgage debt, increase refinancing options and offer incentives for paying down mortgage debt. The U.S. House of Representatives passed the package of changes to the health care overhaul bill that President Obama signed into law earlier this week, wrapping up the administration's yearlong to reform the U.S. health care system.