US stocks: Wall Street edges higher on mixed data

NEW YORK: US stocks edged higher on Friday, with the S&P 500 on track for a fourth straight day of gains as a batch of economic data pointed to an economy that continued to grow at a modest pace.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, fell 1.2% last month after declining 0.9% in October, the government said. US consumer spending was tepid for the month.

In another report, new US single-family home sales rose to a seven-month high in November and the supply of houses on the market was the lowest in 5-1/2 years, adding to signs of a budding recovery in the secto"The data itself has been modestly stronger in the fourth quarter but nothing that changes the baseline slow growth story," said Andrew Slimmon, managing director, Global Investment Solutions of Morgan Stanley Smith Barney in Chicago.

"What is so tragic about 2011 is that investors have reacted poorly in multiple ways to a baseline economic story that has been incredibly consistent. The economy has been far less volatile than investors' expectations for what has been going on in the economy."

The Dow Jones industrial average gained 42.35 points, or 0.35%, to 12,212.00. The Standard & Poor's 500 Index rose 3.38 points, or 0.27%, to 1,257.38. The Nasdaq Composite Index added 1.09 points, or 0.04%, to 2,600.54.

The benchmark S&P has risen 3.1% this week as data pointed to a gradual improvement in the economy, nudging the index just above the unchanged mark for the year.

Volume was expected to be light ahead of the extended Christmas holiday weekend, and could spark exaggerated market swings. The New York Stock Exchange will have normal trading hours, but the bond market will close at 2:00 pm.

The US Congress approved a two-month extension of a payroll tax cut for 160 million American workers that otherwise would have expired on Dec. 31, wrapping up a tumultuous year of battles over spending and taxes.

SunPower Corp jumped 10.8% to $6.49 after the solar panels maker reached a deal to acquire rival Tenesol, a unit of France's Total SA. At the same time, Total is buying 18.6 million SunPower shares, raising its stake to about 66%.

WPX Energy Inc will replace Compuware Corp in the S&P 500 index, with Compuware replacing Exterran Holdings Inc in the S&P MidCap 400 index, Standard and Poor's said.

Exterran will replace Skyline Corp in the S&P SmallCap 600 index. The changes are effective at the close of trading on Friday, Dec. 30.r.