Investing.com - U.S. stocks rallied broadly on Friday, with the S&P 500 closing at a five year high and the Nasdaq closing at a 12-year high as better-than-expected corporate earnings and upbeat trade data from the U.S. and China boosted investor confidence.
The Dow Jones industrial average rose 0.35% on Friday and ended the week down 0.1%. The S&P 500 advanced 0.57% on Friday, up 0.3% for the week and the Nasdaq jumped 0.91% to its highest close November 2000.
In the U.S. government data showed that the trade deficit narrowed to the smallest since January 2010 in December as exports rose sharply.
The upbeat data fuelled hopes that figures for fourth quarter growth may be revised upwards after preliminary data last week showed that the economy contracted by an annualized 0.1% in the three months to December.
The Commerce Department said trade deficit narrowed to USD38.5 billion from a USD48.6 billion deficit in November, compared to expectations for a deficit of USD46.0 billion.
Meanwhile, Chinese data showing that exports surged 25% and imports climbed 29% in January added to signs of a recovery in the world’s second largest economy and bolstered market sentiment.
Trade volumes were below average on Friday as the northeastern U.S. braced for a blizzard.
In Europe, markets were lower for a second successive week as renewed political uncertainty in Spain and Italy weighed. The benchmark Stoxx Europe 600 lost 0.3% for the week, the IBEX 35 was down 0.80% and Italy's FTSE MIB dropped 4.1%, the largest weekly decline since September.
Elsewhere, Asian markets were broadly higher, with China's Shanghai Composite advancing 0.6%, while Australia's S&P ASX 200 added 0.7% to close at its highest level since April 2010.
However, Japan's Nikkei dropped 1.8% as the yen strengthened on the back of comments by Japan’s finance minister and shares in Sony slumped following a unexpected quarterly loss.
The Dow Jones industrial average rose 0.35% on Friday and ended the week down 0.1%. The S&P 500 advanced 0.57% on Friday, up 0.3% for the week and the Nasdaq jumped 0.91% to its highest close November 2000.
In the U.S. government data showed that the trade deficit narrowed to the smallest since January 2010 in December as exports rose sharply.
The upbeat data fuelled hopes that figures for fourth quarter growth may be revised upwards after preliminary data last week showed that the economy contracted by an annualized 0.1% in the three months to December.
The Commerce Department said trade deficit narrowed to USD38.5 billion from a USD48.6 billion deficit in November, compared to expectations for a deficit of USD46.0 billion.
Meanwhile, Chinese data showing that exports surged 25% and imports climbed 29% in January added to signs of a recovery in the world’s second largest economy and bolstered market sentiment.
Trade volumes were below average on Friday as the northeastern U.S. braced for a blizzard.
In Europe, markets were lower for a second successive week as renewed political uncertainty in Spain and Italy weighed. The benchmark Stoxx Europe 600 lost 0.3% for the week, the IBEX 35 was down 0.80% and Italy's FTSE MIB dropped 4.1%, the largest weekly decline since September.
Elsewhere, Asian markets were broadly higher, with China's Shanghai Composite advancing 0.6%, while Australia's S&P ASX 200 added 0.7% to close at its highest level since April 2010.
However, Japan's Nikkei dropped 1.8% as the yen strengthened on the back of comments by Japan’s finance minister and shares in Sony slumped following a unexpected quarterly loss.