It wasn't too many weeks ago that a very bad day for GE brought the whole market down, just as this week the same happened with Wal-Mart.  And just as yesterday the Wal-Mart debacle was more than compensated for by Citigroup, today a very good report from GE shot the Dow up 74 points, GE now being the 2nd giant enterprise to turn in good solid Q3 results.  This created so much optimism on Wall Street that traders virtually ignored Mattel's bad sales report, in fact rewarding the toy giant with a 6% boost.  The same logic blew out the window though for Honeywell which was penalized 1.5% even though it also turned in a glowing Q3 report.  Go figure.  There is enough good reporting now that the previous forecast for a nearly 5% loss in Q3 earnings has already, after just one week, been revised to a forecast of just under a 4% loss.  A 20% shift in perception in just the first week, that's quite significant.  Other very good news included U of M's consumer sentiment index rebounding strongly in the last two weeks suggesting the recovery remains very much on track.  Today's trading was a little below recent averages at 6.6 billion shares.  More drama I'm sure next week.

Markets | Fri Oct 16, 2015 6:52pm EDT

Wall St. closes up, registers third week of gains

BY CAROLINE VALETKEVITCH

DJ:  17,215.97  +74.22       NAS:  4,886.69  +16.59         S&P:  2,033.11  +9.25

(Reuters)  U.S. stocks ended higher on Friday, notching a third week of gains, lifted by a jump in General Electric shares and upbeat consumer sentiment data.

The S&P 500's three weeks of gains marked its longest winning streak since May and extended a rebound from the market's August selloff.

GE (GE.N) shares rose 3.4 percent to $29.98, hitting their highest level in seven years, after the company reported better-than-expected earnings. The stock was among the biggest boosts to the S&P 500 and Dow.

Mattel (MAT.O) jumped 6 percent to $23.89 and was the biggest percentage gainer in the S&P 500, even after its sales missed estimates.

Consumer sentiment data helped. The University of Michigan's preliminary index on consumer sentiment rebounded strongly in early October, suggesting that the economic recovery remained on track.

"We're in a window right now of roughly between 2,000 and 2,050 (for the S&P) that is fairly important for the market. That's the point at which the market broke down in August. If we can hold above 2,000, that would be a good thing," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

He added: "We're in the better part of the year from a seasonal perspective. Certainly with the selloff that we've had in the third quarter, it sets up for potentially a good fourth quarter."

The Dow Jones industrial average .DJI rose 74.22 points, or 0.43 percent, to 17,215.97, theS&P 500 .SPX gained 9.25 points, or 0.46 percent, to 2,033.11 and the Nasdaq Composite.IXIC added 16.59 points, or 0.34 percent, to 4,886.69.

For the week, the Dow rose 0.8 percent and the Nasdaq gained 1.2 percent, both also registering a third week of gains, while the S&P 500 was up 0.9 percent.

Forecasts for S&P 500 earnings improved slightly as more companies reported results. Third-quarter earnings are now expected to have fallen 3.9 percent, compared with Monday's forecast for a decline of 4.8 percent, according to Thomson Reuters data.

S&P consumer staples .SPLRCS, up 1 percent, and discretionaries .SPLRCD, up 0.6 percent, were among the top-performing sectors along with health care .SPXHC, also up 1 percent. Shares of McDonald's (MCD.N) rose 1.1 percent to $104.82, a record closing high.

On the down side, Honeywell (HON.N) fell 1.5 percent to $97.03 even though it also beat profit estimates. Industrial tool maker Grainger (GWW.N) slumped 6.3 percent to $207.65 after results.

Other domestic data on Friday showed a lackluster industrial production picture, with industrial production in September shrinking for the second month in a row, in line with expectations.

The Federal Reserve, which kept rates at near-zero levels at its September meeting, is waiting for signs of stabilizing inflation and sustained economic recovery before it pulls the trigger on a rate hike.

Twitter (TWTR.N) rose 4.8 percent to $31.15 after Bloomberg reported that former Microsoft Chief Executive Steve Ballmer owns a 4 percent stake in the company.

Advancing issues outnumbered declining ones on the NYSE by 1,829 to 1,225, for a 1.49-to-1 ratio on the upside; on the Nasdaq, 1,428 issues fell and 1,330 advanced for a 1.07-to-1 ratio favoring decliners.

The S&P 500 posted 21 new 52-week highs and 4 new lows; the Nasdaq recorded 56 new highs and 25 new lows.

About 6.6 billion shares changed hands on U.S. exchanges, compared with the 7.5 billion daily average for the past 20 trading days, according to Thomson Reuters data.