NEW YORK (AP) – Wall Street ended a robust week on a quieter note Friday after the Commerce Department reported that housing construction fell to its lowest level in more than six years. The Dow Jones industrials rose moderately, managing a fourth straight record high close.

The technology-laden Nasdaq composite index pulled back slightly, following a string of five straight advances for the major indexes. For the week, the major indexes rose, though Friday’s move higher was somewhat tepid as declining issues outnumbered advancers on the New York Stock Exchange by about 6 to 5.

Jack Ablin, chief investment officer at Harris Private Bank, contends that much of the week’s optimism came from lower-than-expected inflation readings. Investors sensed that inflation, the overriding concern of the Federal Reserve, could dissipate and perhaps allow the central bank to eventually lower short-term interest rates.

“It gives the Fed a lot more flexibility. And elbow room is good when it comes to trying to navigate the economy,” Ablin said.

The Dow rose 36.74, or 0.30 percent, to 12,342.56. That was also the Dow’s new trading high. The index, made up of 30 blue chip stocks, has closed at record levels 18 times since the beginning of October.

Broader stock indicators were narrowly mixed. The Standard & Poor’s 500 index rose 1.44, or 0.10 percent, to 1,401.20, marking the first time the S&P closed above 1,400 in more than six years. The Nasdaq composite index was down 3.20, or 0.13 percent, at 2,445.86.

Bonds fell, with the yield on the benchmark 10-year Treasury note falling to 4.61 percent from 4.67 percent late Thursday. The dollar was mixed against other major currencies, while gold prices rose.

For the week, the Dow rose 1.93 percent, while the S&P gained 1.47 percent and the Nasdaq added 2.35 percent, as concerns about inflation eased.

Light, sweet crude fell 45 cents to $55.81 a barrel on the New York Mercantile Exchange. Oil has fallen sharply in recent days – it settled at a 17-month low Friday – as traders have grown concerned slumping demand would outweigh proposed production cuts.

While investors were well aware of a slowdown in the housing market, the figures on housing starts showed a precipitous decline. Construction of single-family homes and apartments fell to an annual level of 1.486 million units last month, a 14.6 percent decline from September.

Initial public offerings

An eagerly anticipated initial public offering, that of New York Mercantile Exchange parent Nymex Holdings Inc., occurred Friday with shares opening at $120 and finishing the day at $132.99 after rising as high as $152. The offering of the 134-year-old commodities exchange had been priced at $59 per share, already higher than earlier estimates, as investors cheer strength in the energy and metals markets. The higher opening makes it the biggest gainer for an IPO on the NYSE this year.

Todd Leone, managing director of equity trading at Cowen & Co., contends that the markets have been re-energized by the spate of buyout announcements in recent weeks, such as those for Clear Channel Communications Inc. and Reader’s Digest Association Inc. on Thursday. “That just reprices the market. That tells you stocks are worth more than we ever thought.”

Still, he would like to see investors catch their breath so stocks don’t become overbought. “Long term it scares me a little bit but short term I think we’ll continue to move higher.”

Ablin holds similar concerns about the market. “Fundamentally it may be fairly valued, but the economic backdrop is troublesome. We have a lot of liquidity coming into the market. That by itself would be OK as long as we don’t see unbridled optimism.”

Ablin expects that next week, which is expected to be light in terms of earnings and economic data because of the Thanksgiving holiday, could serve as a test of the market’s resolve.

“It will be interesting to watch the market activity next week as a barometer of sentiment.”

Corporate ups, downs

In corporate news Friday, Starbucks Corp. posted a 5 percent drop in its fiscal fourth-quarter profit, though the coffee retailer’s profit met Wall Street’s expectations. The stock fell $2.01, or 5.1 percent, to $37.42 as investors grew concerned about issues such as labor costs.

Homebuilders were mixed following the data on housing starts. Toll Brothers Inc. was up 18 cents at $29.89, while Lennar Corp. fell 6 cents to $49.34. Technical Olympic USA Inc. was down 14 cents at $8.74.

Foot Locker Inc., the athletic footwear retailer, fell 64 cents, or 2.7 percent, to $23.27, after reporting a 2 percent decline in its third-quarter profit.

Advanced Magnetics Inc. jumped $13.10, or 30 percent, to $57 after the maker of components used in MRI tests reported promising results from a late-stage clinical trial for an iron-replacement therapy for chronic kidney disease patients.

The Russell 2000 index of smaller companies was down 2.28, or 0.29 percent, at 788.47.

On the New York Stock Exchange, consolidated volume came to 2.72 billion shares, compared with 2.83 billion traded Thursday. Overseas, Japan’s Nikkei stock average closed down 0.45 percent. Britain’s FTSE 100 closed down 1.01 percent, while Germany’s DAX index was down 0.48 percent, and France’s CAC-40 finished down 1.20 percent.

The Dow Jones industrials ended the week up 234.13, or 1.02 percent, to finish at 12,342.56. The S&P 500 index rose 20.30, or 1.47 percent, to 1,401.20. The Nasdaq rose 56.14, or 2.35 percent, to end at 2,445.86.

The Russell 2000 index closed the week up 19.32, or 2.51 percent, at 788.47.

The Dow Jones Wilshire 5000 Composite Index – a free-float weighted index that measures 5,000 U.S. based companies- ended the week at 14,098.12, up 221.65 points from last week. A year ago the index was at 12,442.36.

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