NEW YORK -- The stock market eked out a gain Friday as investors took downbeat economic news in stride.
The modest gains still left stocks with a loss for the week but the Dow Jones industrial average and the Standard & Poor's 500 index logged their best month since November.
The latest bad news came from several corners including the financial industry. Insurer American International Group Inc. reported a larger than expected fourth-quarter loss.
The National Association of Realtors said sales of previously occupied homes fell 7.2 percent in January. It marks the second straight month of a big drop. Analysts had predicted a gain.
Meanwhile, the Commerce Department reported that the nation's economy grew at a faster pace than initially estimated for the end of 2009. Gross domestic product grew at an annual rate of 5.9 percent, above the 5.7 percent previous estimate. Growth is expected to slow in the coming quarters.
The mixed reports added to investors' confusion about the economy. Analysts are divided over whether a recovery is on track. That has led to swings in the stock market after nearly a year of huge gains.
"We're in a time period where the range of potential outcomes is probably wider than it's been for some time," said Colleen Supran, a portfolio manager at Bingham, Osborn & Scarborough in San Francisco. She pointed to concerns about everything from unemployment and housing to heavy debt loads in Greece and other parts of Europe causing another recession.
"Are we going to have a double dip⢠Are corporations going to be able to grow earnings⢠That's sort of the bottom line for stock prices in the long run."
The Dow rose 4.23, or less than 0.1 percent, to 10,325.26. It fell 0.7 percent for the week but rose 2.6 percent for the month. That's the best run since it jumped 6.5 percent in November.
