U.S. stocks rose in light volume on Friday, with basic materials shares leading the way as commodity prices kept rising on the back of a weaker U.S. dollar.
The greenback fell broadly after weaker-than-expected U.S. consumer spending and housing data stoked worries that the recovery is losing momentum.
Freeport-McMoRan Copper & Gold Inc
The inverse correlation of the dollar to equities seems to be a trend that you can focus on as an investor for the time being, said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
The logic is that a weaker dollar helps increase exports, sales and profits for multinational companies in the United States.
The Dow Jones industrial average <.DJI> gained 28.64 points, or 0.23 percent, to 12,431.30. The Standard & Poor's 500 Index <.SPX> rose 4.11 points, or 0.31 percent, to 1,329.80. The Nasdaq Composite Index <.IXIC> added 10.24 points, or 0.37 percent, to 2,793.16.
The S&P 500 was on track to close its fourth straight week of losses, a streak not seen since February 2010.
Thin trading made for a lackluster day on Wall Street, with desks short-staffed before the Memorial Day holiday that will keep U.S. markets closed on Monday.
Trading is on the soft side, with many investors getting a head start on the holiday weekend, RDM Financial's Sheldon said.
Bank stocks led gains in Europe and also boosted the U.S. market. Bank of America
Medco Health Solutions Inc
On the macroeconomic front, separate reports showed the U.S. economy remained sluggish early in the second quarter with high gasoline prices crimping consumer spending and bad weather helping to push home resales to a seven-month low in April.
(Reporting by Rodrigo Campos; Editing by Jan Paschal)