The leading US blue-chip index, the Dow Jones Industrial Average, notched up its second straight record close, largely on upbeat economic news as US retail sales surged higher, traders said. Stocks closed out the week on a high after the government reported that US retail sales grew at a better-than-expected 0.9 percent clip in December, defying Wall Street forecasts which had anticipated a rise of just 0.7 percent.
The Dow index closed up a strong 41.10 points (0.33 percent) at a record 12,556.08, breaking the prior record of 12,514.98 points set a day earlier.
The Nasdaq composite finished up a robust 17.97 points (0.72 percent) at 2,502.82 while the broad-market Standard and Poor's 500 index gained 6.91 points (0.49 percent) to 1,430.73.
Investors cheered the latest retail-sales snapshot as a sign that consumer resilience is bearing up well despite last year's economic slowdown.
Analysts track consumer spending closely as it accounts for some two-thirds of all US economic growth.
"The consumer is obviously doing just fine, despite the weakness in the housing sector," observed Dick Green of Briefing.com.
The Commerce Department report also showed retail sales up 1.0 percent, excluding volatile automobile sales. That was double the average analyst forecast of 0.5 percent.
"It appears that households had a merry holiday spending money, despite what the retailers may have been claiming," said Joel Naroff of Naroff Economic Advisors.
The report also raised confidence levels as some economists are now chalking up their forecasts for fourth-quarter US economic growth following other stronger-than-expected economic readings in recent days.
Technology shares gained despite a profit warning from Advanced Micro Devices, the number-two semiconductor firm, which cautioned that its bruising price war with rival Intel will eat into fourth-quarter profits.
AMD's shares closed down a hefty 1.92 dollars, 9.5 percent, at 18.26 dollars.
Intel, which is due to release its latest quarterly earnings Tuesday, finished up 21 cents at 22.13 dollars.
Napster's shares surged 30 cents to 4.12 dollars after AOL, a unit of Time Warner, said the online music retailer would become the exclusive music subscription provider for AOL Music, replacing its AOL Music Now service.
Oil prices also remained in focus. A rapid decline in oil prices in recent weeks has also helped propel stocks higher, but crude prices rebounded in Friday trading.
New York's main oil futures contract, light sweet crude for delivery in February, closed up 1.11 dollars at 52.99 dollars a barrel.
Energy firms appeared to benefit from the price rebound as ExxonMobil rose 1.68 dollars to 72.66 dollars, while ConocoPhillips climbed 2.01 dollars to 63.83 dollars and Chevron's stock closed up 1.66 dollars at 70.35 dollars.
Bond prices declined as the yield on the 10-year US Treasury bond rose to 4.771 percent from 4.737 percent Thursday while that on the 30-year bond spiked to 4.861 percent against 4.822 percent.
Bond yields and prices move in opposite directions.
