Stocks pulled off a gain in the final minutes of trading Friday after a rocky session as investors weighed some encouraging economic reports against gloomy earnings.
The Dow Jones Industrial Average rose 44.29, or 0.5 percent, to close at 8,212.41. The S&P 500 also advanced 0.5 percent, while the Nasdaq gained 0.1 percent.
For the week, all three indexes gained more than 1 percent as investors began to see glimmers of hope that an economic recovery is on the way.
It was an eventful week, marked by fears about swine flu, news that Chrysler will file for bankruptcy protection and the first time the Fed has said in its statement that the pace of economic deterioration appears to be slowing.
Consumer confidence soared in Aprilto its highest level since the September failure of Lehman Brothers, according to the Reuters/University of Michigan final reading for April. It also marked the first year-over-year increase in the indicator since July 2007.
Among other data released Friday: The Institute for Supply Management reported its gauge of the manufacturing index jumped to 40.1 in April from 36.3 in March, while factory orders dropped 0.9 percent in March and were revised sharply lower for the prior month.
Traders have been encouraged by economic reports all week, including the drop in jobless claims Thursday and the paring of inventories in the GDP report Wednesday, which was interpreted as a sign that a build in inventories may be coming.
For the week, utilities were the best performer, up 4.6 percent, while financials were the worst, down 2.9 percent.
Caterpillar, Walt Disney and General Motors were the biggest gainers on the Dow this week, while Citigroup, Bank of America and American Express were the biggest losers.