After a mostly flat trading day, the Dow and S&P 500 climbed during the last hours of trading Friday to finish the week at their highest levels since December 2007.
All three major indexes logged a third straight week of gains. The Dow gained 1.2%, the S&P 500 rose 1% and the Nasdaq added 0.3%.
Markets will be closed Monday in observance of Martin Luther King, Jr. Day.
Stocks spent most of Friday near the breakeven line as investors analyzed several corporate earnings reports.
A 6.3% drop in shares of Intel ( weighed on all three indexes, particularly the tech-heavy Nasdaq, after the chipmaker reported that )quarterly profits fell 27% from a year earlier.
Capital One ( was among the biggest losers on the S&P 500. Its shares fell more than 7% as the credit card lender and bank reported earnings that fell short of forecasts. )
On the flip side, General Electric ( rose 3.5% after the conglomerate issued an upbeat outlook and reported better-than-expected earnings and revenue. GE was the biggest gainer on the Dow. )
Morgan Stanley (was also a big winner, with shares rising almost 8% after the bank reported earnings that narrowly beat expectations. )
It's been a mixed bag for earnings this week. JPMorgan Chase ( and )Goldman Sachs ( issued strong reports, while investors were disappointed by )Citigroup (and )Bank of America (. )
Overall, S&P 500 companies are expected to report earnings growth of 3.8% for the last three months of 2012, according to S&P's Capital IQ.
Investors also monitored the ongoing troubles at Boeing (, which has been in focus this week due to problems with ) its new 787 Dreamliners that prompted authorities around the world to ground the planes.
In international news, China's economy grew at a stronger-than-expected annual rate of 7.9% in the final three months of 2012. Asian stocks rallied on the news. The Nikkei surged nearly 3%, helped by a weaker yen.
Back in the U.S., the University of Michigan's consumer sentiment index fell to 71.3 in January from 72.9 the previous month. Analysts were expecting a reading of 75.
The dollar gained versus the euro, the British pound and the Japanese yen.
Oil prices rose slightly, while gold prices slipped.
The price on the 10-year Treasury rose, pushing the yield down to 1.84% from 1.88% late Thursday.