NEW YORK -- U.S. stocks rose Friday, giving the Standard & Poor's 500 index its fourth straight week of gains, as gauges for leading indicators and consumer sentiment advanced more than estimated.
Northrop Grumman climbed 4 percent after increasing its share-buyback program by $4 billion. Boeing and JPMorgan Chase & Co. added more than 2.4 percent, pacing gains in the Dow Jones industrial average as a gauge of cyclical stocks rallied. J.C. Penney slid 4.2 percent after its first-quarter loss widened.
The S&P 500 rose 0.9 percent to 1,666.12. The equity benchmark closed at a fresh record and added 2 percent this week. The Dow advanced 121.18 points, or 0.8 percent, to 15,354.40, also a record.
The index of U.S. leading indicators climbed in April, a rebound from March that suggests the world's largest
economy may be poised for further expansion. The Conference Board's gauge of the outlook for the next three to six months climbed 0.6 percent last month after falling a revised 0.2 percent in March that was steeper than previously reported, the New York-based group said Friday
Americans' confidence in the economy climbed in May to the highest level in almost six years as rising real estate values and record stock prices boosted household wealth. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment rose to 83.7, the highest since July 2007, from 76.4 in April, a report Friday showed.
The rally pushed 193 stocks in the S&P 500, or 39 percent of the gauge, to their highest levels in at least 52 weeks on May 15, the most in Bloomberg data going back to 1993.
About 90 percent of stocks in the benchmark index traded above their average prices from the past 50 days as of Thursday, according to data compiled by Bloomberg, approaching the two-year high of 93 percent reached in January.
The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 Index option prices known as the VIX, slid 4.7 percent to 12.45, the lowest in five weeks. Options contracts on stocks, exchange-traded funds and indexes expired today, leading investors to adjust their holdings of some securities. More than 6.2 billion shares traded hands on U.S. exchanges, in line with the three-month average.
Companies whose earnings are most tied to economic swings led Friday's advance. The Morgan Stanley Cyclical Index rose 1.7 percent to a record close. JPMorgan Chase added 2.6 percent to $52.30, the biggest increase in the Dow.
Energy and industrial companies increased at least 1.5 percent for the biggest gains among 10 groups in the S&P 500 Friday.
Boeing, the world's largest plane maker, rose 2.4 percent to $98.92, the highest since October 2007. United Technologies, maker of Pratt & Whitney jet engines and Otis elevators, advanced 2.3 percent to a record $97.35.
Northrop Grumman climbed 4 percent to $82.19, an all-time high. The weapons maker said it will add $4 billion to an existing $1 billion share-repurchase program and retire 25 percent of its shares outstanding by 2015.
Automaker shares jumped 3 percent as a group, the most among 24 industries in the S&P 500. Goodyear Tire & Rubber surged 7 percent to $14.74 and Ford Motor added 3 percent to $15.08. European Union car sales rose in April for the first time since September 2011, the Brussels-based European Automobile Manufacturers' Association said Friday.
An S&P gauge of homebuilders added 1.9 percent as all 11 stocks in the index rose. PulteGroup jumped 2.6 percent to $23.95.
J.C. Penney dropped 4.2 percent to $18.01 after its first- quarter loss widened as the department-store chain works to rebound from former CEO Ron Johnson's failed makeover. CEO Myron Ullman, who took the position back from Johnson last month, has been increasing promotions to revive sales while pursuing a $1.75 billion loan.
Nordstrom retreated 0.7 percent to $60.68 after the retailer posted first-quarter revenue that trailed analysts' estimates and cut its sales forecast for the year.