Stocks rose on Friday as encouraging economic indicators overshadowed disappointing results from Bank of America and Google.
A government report showed underlying inflation pressures remained contained in March, while a survey showed April consumer sentiment rose more than expected. Investors have been concerned that higher energy and food costs would slow consumer spending.
I'm surprised the market is holding up so well, given Google and Bank of America. But everyone is happy with the consumer price number, said Randall Warren, chief investment officer of Warren Financial Service in Exton, Pennsylvania.
People were afraid that inflation could derail the bull market, and this data puts that story on hold.
Still, investors placed most of their bets on defensive stocks, which tend to outperform in times on waning growth. Utilities <.GSPU> and healthcare <.GSPA> were the top-performing sectors on the S&P 500, both up more than 1 percent.
The Dow Jones industrial average rose <.DJI> 71.18 points, or 0.58 percent, to 12,356.33. The S&P 500 <.SPX> gained 7.14 points, or 0.54 percent, to 1,321.66. The Nasdaq Composite <.IXIC> rose 6.78 points, or 0.25 percent, to 2,767.00.
Bank of America Corp
Information technology <.GSPT> was the sole S&P sector to fall in afternoon trading.
The first week of earnings has been a mixed bag, with some bellwether companies unable to excite the market despite some cases of stronger-than-expected profits. Investors have been disappointed with companies' revenues or outlooks.
If this theme of discouraging reports continues, I'll become more bearish on the season. But right now, it could go either way, and it looks like the market wants to go up, Warren said.
Charles Schwab Corp
Bond insurer Assured Guaranty Ltd
(Reporting by Ryan Vlastelica and Rodrigo Campos; Editing by Kenneth Barry)