Stocks were moving higher Friday after a string of declines, with equities on track for their strongest quarter in more than two years.
The S&P 500 has fallen for three straight days but remains up 2.8 percent in March and up almost 12 percent for the first quarter. If could be the best start to the year since 1998 and the index's best quarter since the third period of 2009.
"We've had three days of declines, so it isn't surprising to see a bounce today, especially on the last day of the quarter, but the data shows that while the economy is on a decent trajectory, growth may not be as strong as some would like," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.
In economic news, a report showed consumer confidence rebounded to its highest level in more than a year in March as optimism about jobs and income overcame higher prices at the gasoline pump.
Also, U.S. consumer spending in February increased by the most in seven months, even as personal income rose modestly, which could prompt analysts to scale back expectations of a sharp pullback in growth this quarter. Equities barely moved after the data.
Some analysts look for a market pullback in the second quarter after the strong early run as investors seek confirmation the economic recovery will not stall.
Tech shares, which have surged 21.5 percent this quarter, are seen as vulnerable, especially if Apple Inc pulls back. The tech titan is up 51 percent over the same period.
Research in Motion Ltd late Thursday reported its first quarterly loss since 2005 and said it would no longer issue financial forecasts, prompting analysts to cut their price targets on the stock. U.S.-listed shares rose 1.5 percent to $13.93 in premarket trading, rebounding from earlier declines.
Verizon Communications Inc plans an integrated video service for its wireless customers as soon as this holiday season, its chief executive told the Wall Street Journal. Shares of the Dow component rose 0.6 percent to $38.30 before the bell.
The Dow managed a slim gain on Thursday while the S&P 500 and the Nasdaq shook off most of their earlier losses to end slightly lower as investors bought blue chips that have been rallying throughout the quarter.
Reuters contributed to this report.
