Wall St. Holds On to Week’s Big Gains

Wall Street ended a big week on a quiet but encouraging note Friday as modest stock gains lifted the Nasdaq composite index to its first five-session winning streak in seven months and biggest weekly gain in more than a year.

Analysts said the market’s ability to hold steady, rather than fall sharply on profit taking or fears that the week’s big advance would fizzle, suggests investor confidence is slowly recovering.

“This is a good way to end the week. We’ve hung on to most of the gains, and the market’s overall tone is better, and the news appears to be improving,” said Rafael Tamargo, director of equity research at Wilmington Trust.

The Dow Jones industrial average closed up 63.87 points, or 0.6%, at 10,353.08. The Dow, which enjoyed two triple-digit advances this week, had its highest finish since April 10, when it stood at 10,381.73.

Broader stock indicators also moved higher. The tech-focused Nasdaq composite gained 10.95 points, or 0.6%, to 1,741.39. Its last five-session gain was in early October.

The Standard & Poor’s 500 index advanced 8.36 points, or 0.8%, to 1,106.59.

The indexes’ weekly performances also were solid. The Dow gained 4.2%, Nasdaq rose 8.8%, and the S&P; climbed 4.9%. Nasdaq’s gain was its biggest since the week ended April 20, 2001, when it surged 10.3%.

Winners led losers Friday by a narrow 6-5 margin in moderate trading.

Dell rose 10 cents to $27.95 on earnings that beat expectations despite a slight drop in first-quarter profit. The company also raised its forecast for second-quarter profit.

A University of Michigan report showing consumer sentiment rose to a 11/2-year high last month was welcome news but had little effect on stocks.

But bonds slumped on fears the surge in consumer sentiment increases the odds the Federal Reserve will raise interest rates in August. The yield on the benchmark 10-year Treasury note jumped to 5.25% from 5.17% on Thursday.

The dollar fell, hitting a five-month low against the Japanese yen, as concerns about the U.S. economy lingered despite the upbeat consumer data.

Despite the strength of the market this week, analysts remained cautious. They noted that Wall Street has had a recent history of rallying unsustainably as investors lose confidence that business is improving.

They also said much of this week’s buying came in stocks that had fallen sharply in previous weeks on disappointing earnings.

“The tone of the market in the last week or so has changed. We’re getting better earnings reports from important companies. There is the potential to move higher, but it’s going to happen slowly,” said Mike Kayes, chief investment officer at Eastover Capital.

In other market news:

* Utility and energy stocks fell as worries persisted that companies recorded phantom trades to inflate volumes. Duke Energy fell $1.18 to $33.52, while Dynegy shed 63 cents to $7.02.

* Crude oil for June delivery closed 23 cents higher at $28.18 a barrel in New York as traders shrugged off bearish news that Russia will lift its oil export curbs at the end of June.

* Retailer Gap dropped 59 cents to $16.30 on first-quarter earnings that beat expectations but still showed weak sales.

Market Roundup, C4-5