MARKET SNAPSHOT: U.S. Stocks: S&P 500, Dow Hit Record Highs

By Anora Mahmudova and Sara Sjolin, MarketWatch Baker Hughes, Halliburton climb on tie-up news

NEW YORK (MarketWatch) -- After a shaky start, U.S. stocks edged higher on Friday as investors assessed a slew of positive economic reports.

Retails sales increased by more than expected, while consumer sentiment is at highest level since mid-2007. Business inventories climbed in September.

The main benchmark look set to record modest weekly gains.

The Dow Jones Industrial Average (DJI) crept back into record territory, after logging its 25th record close on Thursday.

The S&P 500 (SPX) also logged a fresh intraday high, while Nasdaq Composite (RIXF) edged higher.

"Recently the Dow has weathered all numbers coming out of the U.S., positive or otherwise, so its reaction to the U.S. retail figures later today could provide an indication of the staying power of this record run," said Connor Campbell, financial analyst at Spreadex, in a note.

Economic data:Sales at U.S. retailers rose in October, snapping back from the first decline in eight months as gasoline prices continued to plunge. The uptick in spending last month, especially when gasoline is stripped out, suggests households could be prepared to spend more during the holiday season than they have in years.

The prices paid for imported goods fell in October, largely due to plunging global oil prices, the Labor Department said Friday. The drop was in line with forecasts.

The preliminary November reading on the University of Michigan/Thomson Reuters consumer-sentiment index rose to the highest level since July 2007.

Movers:Baker Hughes Inc.(BHI) jumped after The Wall Street Journal on Thursday reported that Halliburton Co. (HAL) is interested in a tie-up. Halliburton shares also rose.

Nordstrom Inc. (JWN) shares rose after the retailer late Thursday reported earnings and sales ahead of estimates.

Hertz Global Holdings(HTZ) shares slid after the company said on Friday that it has determined that, in addition to 2011 financial statement, it also needs to restate 2012 and 2013 quarterly and annual financial statements.

(Read more about the day's notable stocks in Movers & Shakers column: http://www.marketwatch.com/story/nordstrom-amat-halliburton-are-stocks-to-watch-2014-11-14.)

Other markets: Crude-oil (CLZ4) hovered around a multiyear low, while Brent rebounded from a four-year low.

Metals were mostly lower, pressured by a rise in the dollar, which rose against the yen, to Yen116.68.

In Asia, markets closed mixed, while Europe struggled for direction after eurozone GDP numbers beat forecasts.

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