Stocks Gain on Economic News

Investors swayed between war jitters and optimism from upbeat economic news for much of the day Friday, finally sending stock indexes higher in the final minutes of trading. But the advance wasn’t enough to keep the market’s two-week winning streak from being snapped.

Analysts remain dubious of Wall Street’s ability to forge an upward path in the face of uncertainty about Iraq.

“I don’t think there are any bits of good news sufficient enough to really drive the market higher on a sustained basis,” Richard A. Dickson, senior market strategist at Lowry’s Research Reports in Palm Beach, Fla., told the Associated Press.

Rallies have been short-lived so far this year, often lasting only a day or fizzling out midway through a session. Investors are expected to continue holding back until it’s clearer if and when there will be a war and what effect it would have on the U.S. economy, analysts say.

In Friday’s trading, the Dow Jones industrial average inched up 6.09 points, or 0.1%, to 7,891.08; the Standard & Poor’s 500 index rose 3.87 points, or 0.5%, to 841.15; and the technology-heavy Nasdaq composite advanced 13.58 points, or 1%, to 1,337.52.

Three stocks rose for every two that fell on the New York Stock Exchange, while advancing and declining shares were about even on Nasdaq. Trading volume was modest.

For the week, the Dow lost 1.6%, the S&P; slid 0.8% and the Nasdaq fell 0.9%. In February, blue-chip indexes posted their third straight monthly declines as the Dow shed 2% and the S&P; fell 1.7%, but the Nasdaq managed a 1.3% rise.

Treasury yields eased, meanwhile, as traders speculated that an attack on Iraq could be near. The yield on the benchmark 10-year T-note fell to 3.69% from 3.74% on Thursday.

Still, Wall Street was encouraged Friday by news that the U.S. economy, as measured by gross domestic product, grew at a 1.4% rate in the fourth quarter -- twice as fast as the government first estimated last month and a stronger revision than many economists expected. The day’s other economic reports were more lukewarm.

Analysts said investors are worried that a war with Iraq could undermine an already feeble U.S. economy, particularly if big countries such as Russia decide not to endorse it.

Among active stocks, Intel rose 56 cents to $17.26, after Lehman Bros. raised its per-share profit outlook in 2003 and 2004 for the world’s largest chip maker. The SOX index of semiconductor stocks climbed 2.8%.

Among the losers, Gap tumbled $1.78 to $13.04 after the retailer reported late Thursday that fourth-quarter profit met Wall Street’s forecast but warned that its performance for February missed expectations.

In other highlights:

* L.A.-based Univision Communications climbed 95 cents to $24.77 after the Spanish-language broadcaster said it expects earnings to exceed consensus estimates.

* Symantec, whose software deflects computer viruses, tumbled $6.89 to $40.47 after saying next year’s profit will be lower than analysts’ forecast.

* Novell, whose programs manage computer networks, slid 48 cents to $2.60 after the company reported a fourth-quarter loss on failed investments and falling sales.

* Overseas, indexes rallied 1.4% in France and Germany and 2.4% in Britain.

Market Roundup, C4-5