Dow stocks clinch positive week

NEW YORK – The Dow Jones industrial average has logged its first winning week in a month.

The Dow rose 39 points Friday and ended the week with a gain of 2.8 percent, its best weekly advance since mid-February. The market slid in morning trading on disappointing retail sales numbers but started to pare its losses after a report found consumers are gaining confidence in the economy. The market climbed in the last hour of trading to end near the highs of the day.

Treasury prices rose, pushing down interest rates, after spiking on Thursday.

The Dow’s climb of 279 points, or 2.8 percent, during the week was its best since the week ended Feb. 19.

The preliminary Reuters/University of Michigan consumer sentiment index for June showed consumer confidence rose to its highest level since January 2008 and came in well ahead of forecasts. The jump in confidence was an encouraging sign, but it still doesn’t signal the all-clear for the economy, said Michael Sheldon, chief market strategist at RDM Financial Group in Westport, Conn.

“We recovered some lost ground, but there is still some ways to go,” Sheldon said. That was evident in the disappointing retail sales report, which initially sent stocks lower.

The government reported that retail sales fell 1.2 percent in May. It was the first drop in eight months. It was a surprise to economists who had predicted the pace of growth would slow between April and May, but still rise.

Companies dependent on consumer spending fell after the report. Proctor & Gamble Co., which makes Tide detergent and Gillette razors, lost 1.5 percent. J.C.Penney Co. fell 1.1 percent, while Macy’s Inc. shares also slipped.

Technology shares got a boost after handset maker Motorola Inc. settled a patent dispute with Research In Motion Ltd. Motorola climbed 4 percent, while Research In Motion added less than 1 percent.