U.S. Stocks Start Higher, Extending Four-day Streak

NEW YORK (MarketWatch) -- U.S. stocks swung higher at Friday's start, extending gains into a fourth day, after Federal Reserve Chairman Ben Bernanke did not dispel the market's view of another interest-rate cut ahead, and early economic data only reinforced the thinking.

"Bernanke hinted as much by placing significant emphasis on the recent deterioration in consumer spending and on signs of softening in labor market conditions, as well as financial conditions, which appear to have sealed the deal on a rate cut and raised the possibility of 50 basis point cut," said Tony Crescenzi, chief bond market strategist for Miller Tabak & Co.

Speaking Thursday evening in Charlotte, N.C., Bernanke said economic data in coming days would determine whether the Fed cuts rates for a third meeting straight on Dec. 11. .

The Dow Jones Industrial Average climbed 149.6 points to 13,461.4.

The S&P 500 rose 17.78 to 1,488.5, and the Nasdaq Composite gained 28.03 points to 2,696.16.

On Friday, early data was viewed as furthering pressure on the Fed to cut rates for a third time this year when policymakers next meet Dec. 11, with the Commerce Department reporting growth in consumer spending flat-lined in October, and inflation eroded modest income gains. .

In early trade on the New York Mercantile Exchange, crude-oil futures fell under pressure on speculation OPEC might increase production quotas next week, with the front contract recently down $1.4 at $89.61. .

Developments from the corporate front include word from struggling wireless-phone maker Motorola Inc. that its chief executive, Ed Zander, would resign Jan. 1 and be replaced by Greg Brown, its chief operating officer.

By Kate Gibson