U.S. Stocks Rise Despite Mixed Economic Reports

Stocks Inch Ahead In Mixed Volume

Stocks edged up Friday, trading in a narrow range in mixed volume.

The NYSE composite led with a 0.3% advance. The Nasdaq added 0.2%, the S&P 500 0.1% and the Dow was fractionally higher.

Volume was down on the Nasdaq but up on the NYSE.

Economic news also was mixed. On the plus side, the revised fourth-quarter GDP number was stronger than expected. Manufacturing and business activity reports in Chicago and New York also topped estimates. But existing home sales and a consumer sentiment index missed views.

None of the data did much to move the market's needle.

The Nasdaq did inch over its 50-day moving average, but the other major indexes remained below that key level.

For the week, the Nasdaq fell 0.2%, as the Dow and the NYSE composite lost 0.7% each, and the S&P 500 eased 0.4%.

Among top-rated stocks, action had a positive bent Friday.

Nothing in Friday's session changed the market's lethargic situation.

After a healthy run from mid-July to mid-September, stocks have languished in a choppy pattern. In the past five months, the Nasdaq has suffered far more down weeks in above-average trade than up weeks in above-average volume.

And although the Nasdaq has bounced more than 6% off its recent low in the past three weeks, its Accumulation/Distribution Rating remains stuck at a worst-possible E.

The best that can be said of this market is that a number of strong stocks are setting up in bases.

With the market in a correction, it's best to focus on your watch lists. Buy no stocks until the market delivers a follow-through day.

Yet, a positive sign emerged recently. Some stocks with high Composite Ratings broke out in the past three weeks. They appear to be holding together, if not necessarily soaring.

Oil and gold both rose Friday.

5:15 p.m. Update: Stocks finished with small gains Friday after a slew of mixed economic data.

The NYSE composite rose 0.3%, Nasdaq 0.2% and S&P 500 0.1%. The Dow inched up a fraction.

Volume fell on the Nasdaq and rose on the NYSE.

The second estimate of the fourth-quarter 2009 GDP came in higher than previously thought and was above views. But the spending component was weaker than expected.

The Chicago PMI unexpectedly rose. But sentiment and housing data came in below economists' estimates.

Stocks dipped on the week, but finished the month on the plus side. The Nasdaq jumped 4.2%, S&P 500 2.8%, Dow 2.6% and NYSE composite 2.2%.