* Consumer sentiment at 5-year high, inventories up sharply
* JC Penney shares slide after results
* Obama, Boehner hold ground in comments
* Dow up 0.1 pct, S&P 500 up 0.3 pct, Nasdaq up 0.4 pct
By Chuck Mikolajczak
NEW YORK, Nov 9 U.S. stocks advanced on Friday,
but were well off session highs after comments by President
Barack Obama and House of Representatives Speaker John Boehner
left investors little hope that a deal to avoid the "fiscal
cliff" was on the horizon.
Both the S&P 500 and the Nasdaq had risen 1 percent around
midday following economic data showing consumer sentiment was at
its highest level in more than five years and wholesale
inventories jumped in September.
But the fiscal cliff and the euro zone's debt crisis remain
the primary concerns for investors.
House Speaker Boehner had called on Obama to lead the
efforts to avert the cliff, but stood by his opposition to any
tax increases on the wealthy.
Obama later invited congressional leaders to the White House
to start negotiating a deal, but again pushed for higher taxes
for wealthier Americans, underscoring the divide in any
"Investors were disappointed. There was an anticipation that
there may be more willingness to compromise, but just like
Boehner did earlier in the day, both camps stuck to their lines
in the sand, so to speak," said Mohannad Aama, managing director
of Beam Capital Management LLC in New York.
The S&P 500 fell 3.6 percent in the previous two sessions,
its worst two-day performance in slightly over a year, following
the U.S. election as investors shifted their focus back to the
looming "fiscal cliff" and the euro zone's debt crisis.
The potential for higher tax rates in 2013 is pushing
investors to sell both losing and winning stocks for the year,
as they seek to decrease the tax impact from their positions
this year and next.
The fiscal cliff, a combination of government spending cuts
and tax increases set to go into effect early next year unless
Congress acts to change the law before then, could take an
estimated $600 billion out of the U.S. economy and push it into
The Dow Jones industrial average gained 13.59 points,
or 0.11 percent, to 12,824.91. The Standard & Poor's 500 Index
rose 5.34 points, or 0.39 percent, to 1,382.85. The
Nasdaq Composite Index added 17.75 points, or 0.61
percent, to 2,913.33.
Euro-zone concerns also linger for investors . Growth in
Germany, Europe's largest economy, is likely to weaken in the
next two quarters as companies postpone investments while
France's central bank said it expected the euro zone's
second-largest economy to slip into recession as 2012 ends.
Greece is fast running out of cash while it awaits the next
tranche of its 130-billion-euro international bailout that is
keeping it afloat, a deputy finance minister said.
The S&P 500 closed on Thursday below its 200-day moving
average for the first time in five months, a bearish technical
signal that could keep stocks under pressure.
Groupon Inc's shares sank 29.5 percent to $2.77 a
day after the daily deal company's results fell short of Wall
The stock of J.C. Penney fell 4.8 percent to $20.65
and ranked as the S&P 500's biggest decliner after the retailer
reported a sharper-than-expected decline in quarterly sales at
stores open at least a year.
According to Thomson Reuters data through Friday, of the 449
companies in the S&P 500 that have reported earnings, 63.3
percent have topped analysts' expectations - slightly above the
62 percent average since 1994, but below the 67 percent beat
rate over the past four quarters.
But revenue results remain disappointing, with only 38.2
percent of companies topping expectations - well below the 62
percent average since 2002, and the 55 percent beat rate over
the past four quarters.