Stocks stretch winning streak to 6 days despite turbulence

NEW YORK—Stocks closed out their strongest week in five years Friday and have now recovered more than half of the losses they suffered in a plunge at the beginning of the month.

Investors got back to buying stocks almost as quickly as they started dumping them. The gain Friday was the sixth in a row for the Standard & Poor’s 500 index. A combination of cheaper prices for stocks as well as solid company profits put inves- tors back in a buying mood.

The S&P 500, which many index funds track, has risen almost 6 percent in its current streak. Investors haven’t hesitated to buy the same types of stocks that did well before the market’s recent slump, including technology companies and banks.

In a typical market downturn, investors might avoid stocks that have had huge run-ups out of fear they had gotten too expensive. Instead, investors are still betting on more strength in the economy and are buying companies that tend to do better in times of faster growth.

After an unusually long period of calm, stocks plunged at the start of February as investors worried about inflation and rising interest rates. The S&P 500 fell as much as 10 percent from its latest record high reached January 26. But investors weren’t scared off for long.

The S&P 500 gained 1.02 points, or less than 0.1 percent, at 2,732.22. That includes a gain of 4.3 percent this week, its best since January 2013.

The Dow Jones industrial average rose 19.01 points, or 0.1 percent, to 25,219.38. The Nasdaq composite lost 16.96 points, or 0.2 percent, to 7,239.47. The Russell 2000 index of smaller company stocks climbed 6.35 points, or 0.4 percent, to 1,543.55.

Homebuilders rose after the Commerce Department reported that construction of new homes jumped 9.7 percent in January. That was the highest level since October 2016, and permits, a sign of future construction, also climbed. NVR gained $131.23, or 4.3 percent, to $3,208.23 while D.R. Horton rose 46 cents, or 1 percent, to $45.57.

Now that stocks have stopped plunging, investors are focusing on the strong results companies posted in the fourth quarter.

Since the market hit its recent low point on Feb. 8, the S&P 500 technology index is up 8.5 per- cent and its financial company index is up 6.7 percent.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.87 percent from 2.91 percent.

U.S. crude oil picked up 34 cents to $61.68 a barrel in New York. Brent crude, used to price international oils, added 51 cents to $64.84 a barrel in London.

Wholesale gasoline rose 2 cents to $1.75 a gallon. Heating oil added 2 cents to $1.91 a gallon. Natural gas slipped 2 cents to $2.56 per 1,000 cubic feet.