NEW YORK — The Dow Jones industrial average closed above the 10,000 milestone for a second day Friday as investors shrugged off a downbeat report on consumer sentiment to push stocks higher.
Generally strong economic news and positive outlooks from companies such as United Technologies Corp. and Coca-Cola Co. helped keep the Dow index of 30 actively traded stocks in the positive range for the third week in a row.
"The real resistance level now will be 10,150," said Tim Smalls, a trader at SG Cowen Securities. "People are still very skeptical after losing money over the last four years, but this market is slowly winning them over."
The Dow Jones industrial average closed up 34.00, or 0.3 percent, at 10,042.16, gaining 1.82 percent for the week. The index closed above the 10,000 mark Thursday for the first time in 18 months, largely on comments from the Federal Reserve suggesting that interest rates were unlikely to rise anytime soon and a strong retail sales report for November.
The broader market gauges also closed modestly higher. The Nasdaq composite index ended the day up 6.68, or 0.3 percent, at 1,949.00, gaining 0.58 percent for the week. The Standard & Poor's 500 index closed up 2.93, or 0.3 percent, at 1,074.14, for a weekly gain of 1.19 percent.
Wall Street welcomed a government report that wholesale prices declined more than expected, suggesting inflation remains well under control, and appeared unconcerned about news that the trade deficit had widened slightly. Stocks stumbled a bit after a survey by the University of Michigan said consumer confidence was on the wane but pushed higher by the end of the session.
The university's preliminary report for December was said to have shown a sharp decrease in consumer sentiment, to 89.6 from 93.7 in November, Dow Jones Newswires reported, citing people who had seen the data. Analysts had forecast a reading of 95.2 for mid-December. The survey is released only to subscribers.
"Of the three reports, that was the most important and probably dampened some of the enthusiasm that surfaced yesterday with the retail sales report," said Lynn Reaser, chief economist and senior market strategist at Banc of America Capital Management. "We still need to see whatever revisions there are to be made and how consumers actually behave."
The Labor Department reported a 0.3 percent drop in the Producer Price Index, which measures prices of goods before they reach store shelves. Economists had forecast a 0.1 percent rise. The reading supported the idea that the economic recovery is not fanning inflation, and bolstered hopes that interest rates would stay low.
Separately, the Commerce Department said the trade deficit soared to $41.77 billion in October. Shoppers' preference for imports hit a record high, offsetting a sizable gain in exports, including the best showing for sales of farm products in seven years. The October trade imbalance was up 1 percent from a September deficit of $41.34 billion and was the biggest deficit in five months.