NEW YORK - Stocks eked out modest gains Friday ahead of the long holiday weekend as investors eyed higher oil prices and a government report that showed rising personal incomes but slower growth in consumer spending.
With a separate report revealing a slight uptick in consumer confidence, the day's economic data added up to a wash, analysts said. Trading was light, and stocks seemed to stall after reaching significant highs over the last seven weeks. Except for the May employment report due next Friday, there may be few catalysts ahead.
"It's a very quiet day," said Todd Clark, head of listed equity trading at Wells Fargo Securities. "It looks like a lot of people have already checked out for the start of the summer."
In the final hour of trading, the Dow Jones industrial average rose 3.03, or 0.03 percent, to 10,540.63, after a strong session Thursday thanks to an encouraging report on gross domestic product growth.
The broader gauges were also modestly higher. The Standard & Poor's 500 index edged up 0.94, or 0.08 percent, to 1,198.56. The Nasdaq composite index rose 3.84, or 0.2 percent, to 2,075.08.
Treasury prices were flat to lower in a holiday-shortened session, with the yield on the 10-year Treasury note rising to 4.10 percent, up from 4.08 percent late Thursday. The U.S. dollar was lower against other major currencies. Gold prices rose.
Crude oil for July delivery settled up 84 cents at $51.85 per barrel on the New York Mercantile Exchange ahead of Memorial Day weekend, considered the official kickoff of the summer driving season.
The Commerce Department reported a 0.7 percent rise in personal income in April, reflecting a big jump in hiring by private sector businesses. The increase follows two months of 0.5 percent growth. Consumer spending rose 0.6 percent in April, down from a 0.9 percent rise in March. Analysts say rising employment will likely support consumer spending in the period ahead, and help keep the economy moving at a good clip.
The report also showed inflation pressures remained contained, with a gauge preferred by the Federal Reserve showing prices outside of food and energy rose by 1.6 percent in April, compared to the same period a year ago. That was down from a 1.7 percent increase for the 12 months ending in March.
Separately, the University of Michigan's consumer sentiment index showed a rise in consumer confidence. The May index came in at 86.9, higher than the 86 expected on Wall Street, according to published reports. The survey is only released to subscribers.
Pfizer Inc. skidded 64 cents to $28.26 on news that federal health officials are examining reports of blindness among some men using the company's impotence drug Viagra. Regulators have reports of 38 cases among users of Viagra of the rare type of blindness, NAION, or non-arteritic anterior ischemic optic neuropathy, which can occur in men who are diabetic or have heart disease. Viagra has been taken by more than 23 million men worldwide.
The FDA is also examining four reports of the blindness among users of Viagra rival Cialis, which is made by Eli Lilly & Co. Lilly shares added a penny to $59.11.
Ford Motor Co. added 5 cents to $10.08 after the carmaker's finance arm said it had received approval to enter China's lucrative auto financing market and will begin operations later this year. The business initially will concentrate on wholesale financing for dealers, Ford Motor Credit Co. said, but will also conduct trials of consumer loans.
American International Group Inc. was up $1.05 at $56.76 a day after New York regulators filed a civil lawsuit accusing the nation's largest insurance company and two former top executives of using "deception and fraud" to make the company's financial picture appear brighter than it was. Analysts at UBS and Goldman Sachs saw the filing as a positive for the stock, as it contained little new information and set the stage for negotiations toward a possible settlement.
Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange. Volume was at 816.82 million shares, compared with 979.66 million traded at the same point Thursday.
The Russell 2000 index, which tracks smaller company stocks, was up 2.05, or 0.33 percent, at 616.75.
Overseas, Japan's Nikkei stock average surged 1.49 percent. In Europe, France's CAC-40 slid 0.13 percent, Britain's FTSE 100 fell 0.17 percent and Germany's DAX index was up 0.18 percent.
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