Stocks ended higher on Friday following strong trade data, though the Dow Jones industrial average posted a weekly decline and snapped a five-week winning streak.
The Dow industrials climbed 48.92 points, or 0.4 percent, to 13,992.97. The blue-chip index turned in its first weekly loss in six, declining 0.1 percent on the week.
Twenty-one out of 30 components of the Dow traded higher; Hewlett-Packard Co. led the way with a 2.6 percent gain. Boeing Co. weighed on the index with a 1.1 percent loss Friday.
Following the tech bubble of the late 1990s and the 2008 financial-crisis rout, investors are less likely to trust bull runs, said Janet Briaud, president of Briaud Financial Services, who noted the current level of bullishness in stocks was similar to that of late 2007.
“[The Dow] hits 14,000 and then goes back; it’s a big barrier from a technical standpoint. That level of bullishness is something to pay attention to,” Briaud said.
Both the S&P 500 and Nasdaq logged their sixth week of gains.
The S&P 500 index gained 8.54 points, or 0.6 percent, to 1,517.93, with a 0.3 percent gain for the week.
Shares of Microchip Technology Inc. led the S&P 500, closing up more than 7 percent after the chip maker gave a favorable outlook for the first quarter.
Stocks on the tech-heavy Nasdaq composite index closed near their intraday highs, advancing 28.74 points, or 0.9 percent, to 3,193.87. The Nasdaq finished up 0.5 percent on the week. Shares of Apple Inc. rose 1.4 percent Friday to close at $474.98.
Stocks received some support from economic data. Reports, such as the U.S. trade deficit and China trade numbers, are still supportive of continued slow economic growth, said Paul Nolte, managing director at Dearborn Partners in Chicago.
The U.S. trade deficit fell almost 21 percent in December to $38.5 billion, marking the biggest drop in four years, as exports rose and imports softened. In China, exports and imports accelerated at a faster-than-expected rate in January, according to official data.
That better-than-expected trade data may lead to revisions of fourth-quarter gross-domestic-product figures into positive territory, said Scott Armiger, manager of the $500 million Christiana Trust at Wilmington Savings Fund Society.
“That will make people have a little more confidence in GDP, and will probably revise the fourth-quarter number up a little bit,” Armiger said.
In late January, the Commerce Department reported that fourth-quarter GDP contracted by 0.1 percent in the first of three readings.
Following a rise of 12 percent since mid-November, with about 6 percent of that in January alone, the new line for the S&P 500 appears to be 1,500, Dearborn’s Nolte said.
In corporate news, McDonald’s Corp. said its global comparable sales in January fell 1.9 percent. Shares closed up 0.3 percent.
Shares of LinkedIn Corp. finished up 21 percent after the professional social network reported better-than-expected fourth-quarter earnings and revenue.
Moody’s Corp. shares fell nearly 8 percent. The ratings agency reported a 66 percent surge in fourth-quarter earnings, but they came in slightly lower than expected. Also, New York Attorney General Eric Schneiderman is reportedly looking at any potential misconduct by the three major credit-ratings firms, including Moody’s.