U.S. stocks finished higher on Friday, with all three major indexes posting the strongest week in two years, as new data increased investor optimism about the state of the economy. In world markets, European stocks ended higher, led by FTSE 100 in Britain rising 0.7 percent. Asian markets ended mixed, as the Shanghai Composite fell 0.1 percent and the Hang Seng in Hong Kong rose 1.5 percent. In U.S. economic news, the Institute for Supply Management (ISM) said its manufacturing index rose to 55.3 last month from 53.5 in May, when it had fallen to its lowest level since September 2009. The June reading surpassed economist expectations. Separately, the University of Michigan reported that consumer sentiment weakened in June. The university's overall consumer-sentiment index fell to 71.5 from 74.3 in May, slightly below the preliminary June figure and economist forecasts. Meanwhile, the Commerce Department said construction spending declined 0.6 percent in May to an annual rate of $757.9 billion. It is barely above an 11-year low hit in February and about half the $1.5 trillion pace considered healthy by most economists. Analysts expect it could take four years before construction returns to healthier levels. In U.S. company news, major auto makers General Motors (GM), Ford, and Chrysler reported their June sales figures. Sales rose 10 percent during the month at GM and Ford, and surged 30 percent for Chrysler. Shares of Ford rose 1.6 percent, while GM's stock rose 0.8 percent. The U.S. dollar fell versus the euro but rose versus the yen. Light sweet crude oil for August delivery fell 48 cents to $94.94 a barrel on the New York Mercantile Exchange. Gold futures fell $20.20 to $1,482.60 an ounce. The Dow Jones industrial average rose 168.43, or 1.4 percent, to 12,582.77. Alcoa, J.P. Morgan Chase, and Caterpillar were the biggest gainers on the index. The broader Standard & Poor's 500 index rose 19.03, or 1.4 percent, to 1,339.67. The technology-heavy Nasdaq composite index rose 42.51, or 1.5 percent, to 2,816.03.
