Stocks Rise, Dow Rallies To New Record High

(RTTNews) - U.S. stocks rallied on Friday, with the Dow Jones Industrial Average settling at a new all-time high.

The major averages showed little direction for most of the day but advanced in the final hour of the session, with health care and consumer discretionary stocks.

The Nasdaq closed higher but still posted its worst weekly performance in a month.

The Dow industrials rose 32.37 points, or 0.2 percent, to close at 16,583.34. The Dow rose 0.4 percent for the week.

The S&P 500 rose 2.85 points, or 0.2 percent, to 1,878.48, for a 0.1 percent weekly decline. The Nasdaq Composite gained 20.37 points, or 0.5 percent, to 4,071.87, trimming its weekly loss to 1.3 percent.

Traders reacted favorably to signs that the European Central Bank will introduce stimulus in June. Some positive U.S. economic data also boosted appetite for stocks.

Shares of Apple (AAPL) edged down fractionally amid widespread reports that it will pay $3.2 billion for Dr. Dre's Beats headphones.

Separate reports out of Asia said Apple will launch its iPhone 6 in August.

Computer Sciences (CSC) was a top performer on the S&P 500, as the company reported fourth quarter adjusted earnings per share from continuing operations of $1.09, down from $1.22 in the previous year.

Nvidia (NVDA) was down 2.5 percent even as the chipmaker's outlook for current-quarter revenue met expectations.

Merck (MRK) was among the strong performers in the health care sector, as the stocks rose 0.7 percent

In economic news, U.S. wholesale inventories rose more than expected in March, according to figures released Friday by the Commerce Department.

Inventories rose 1.1 percent in March, while economists were looking for a 0.4 percent increase.

Also, inventories were up by a revised 0.7 percent in February, a bit higher than the prior 0.5 percent reading.