Global stocks higher after mixed data

The S&P 500 turned positive for the year and closed out its third week of gains in four on Friday as equities extended their rally after a string of unexpectedly strong economic data.

The Dow Jones industrial average shot up 124.35 points, or 1.02 percent, to 12,294 at the close. The Standard & Poor's 500 Index rose 11.33 points, or 0.90 percent, to 1,265.33. The Nasdaq Composite Index gained 19.19 points, or 0.74 percent, to end at 2,618.64.

For the week, the Dow gained 3.6 percent, the S&P 500 climbed 3.7 percent, and the Nasdaq advanced 2.5 percent.

European shares turned in their best weekly performance since early December on optimism about a global recovery after some positive data from the United States during the week provided evidence the economy was growing.

But volume was only a third of its 90-day daily average and traders expected the "Santa Claus" rally to lose steam in the New Year, with the euro zone debt crisis far from over and the threat of fresh corporate or sovereign credit rating downgrades looming.

The pan-European FTSEurofirst 300 index of top shares closed up 0.8 percent at 990.0 points - its highest close since Dec. 5.

The index ended the week 3.4 percent higher, however, it is down 11.7 percent for the year on concerns that the region's debt crisis could trigger a recession.