NEW YORK -- U.S. equities advanced Friday, sending the Standard & Poor's 500 index higher for the week, as investors turned their attention to economic reports amid the Federal Reserve's intention to raise interest rates.
The S&P 500 rose 0.4 percent to 2,091.54, giving it a gain of 0.7 percent for the week. The Dow Jones industrial average added 69.15 points, or 0.4 percent, to 17,477.40. The Nasdaq composite index increased 0.3 percent.
"Economic data has been a bit better than expected and people are not worrying as much about China," said Paul Zemsky, head of multi-asset strategies at Voya Investment Management "Those are helping, and the fact that the yuan has stabilized and hasn't come crashing down has given a bid under the market."
Data on Friday showed factory production rose more than economists forecast, indicating American manufacturing is regaining its footing after a slowdown. Improving U.S. demand will help cushion factories from weakening global markets, the stronger dollar and the slump in oil prices.
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Separate data showed wholesale prices in the U.S. climbed at a slower pace in July. Confidence among U.S. consumers eased for a second month in August as households braced for an increase in interest rates.
Traders have raised their expectations for a September rate move by the Fed, amid the data and as concerns about the impact of China's currency devaluation ease. The probability of a rate increase in September is 48 percent, up from 40 percent Tuesday, according
to futures trading data compiled by Bloomberg.
Even with predictions rates will rise next month, calm has blanketed the U.S. stock market. The Chicago Board Options Exchange Volatility Index is below its 12- month average. The gauge slipped 4.9 percent to 12.83 on Friday.
U.S. stocks still trail most developed markets this year, with the S&P 500 holding in the tightest trading range since 1927. Just five mega-cap stocks -- Apple, Amazon.com, Facebook, Google and Netflix -- are propping up the market, with combined gains in 2015 that actually exceed the entire S&P 500.
As the earnings season winds down, about three-quarters of the S&P 500 companies that have reported so far beat profit estimates, while less than half topped sales projections. Analysts expect a 2.1 percent drop in second-quarter earnings, less than July 10 calls for a 6.4 percent decline.
Nine of 10 major industries in the S&P 500 advanced, led by financial, industrial and utility companies. Energy shares slipped 0.2 percent.
Among stocks moving on corporate news, Nordstrom rose 4.3 percent after its full-year profit forecast exceeded analysts' estimates. J.C. Penney jumped 5.6 percent after posting a second-quarter loss that was smaller than analysts estimated and saying the back-to-school shopping season was off to a "strong start."
Sysco rose 7.4 percent, the most since December 2013, after activist investor Nelson Peltz disclosed a 7.1 percent stake in the food distributor and said he may seek representation on the board.
King Digital Entertainment Plc dropped 11 percent as the maker of the Candy Crush video games said bookings will drop in the third quarter.
Applied Materials fell 2.4 percent as the largest maker of machinery used to build computer chips forecast fiscal fourth-quarter sales that trailed analysts' estimates.
El Pollo Loco dropped 21 percent to a record low after the chain of chicken restaurants said sales this year would rise at the low end of its forecasted range.