US stocks rise in thin trading

US Stocks inched higher in light trading after government data indicated that the economy was growing at a slower pace, raising investors’ hopes that moderating economic growth might halt the Federal Reserve’s streak of interest rate rises.

But gains were capped as General Electric, Advanced Micro Devices and Alcoa fell and bonds declined sharply, sending the yield on the 10-year Treasury bill above 5% for the first time since 2002.

The 5% yield could have acted as a “psychological barrier,” said Mike Malone, trading analyst, Cowen & Co. The fact that it didn’t “suggests yields could move higher in the next week, keeping some pressure on equities.”

The day’s economic news quieted investors’ interest rate fears. Retail sales for March were slightly higher than economists expected, as were weekly unemployment claims, while business inventories were slightly leaner.

Together, the reports support “the Goldilocks view of the economy; the economy is still growing at a healthy pace, there are no signs of significant increases in inflation,” said Brian Bush, director of equity research, Stephens Inc.

The Dow Jones industrial average rose 7.68, or 0.07 percent, to 11,137.65.

Broader stock indicators were slightly higher. The Standard & Poor’s 500 index rose 1.00, or 0.08%, to 1,289.12 and the Nasdaq composite index rose 11.43, or 0.49 percent, to 2,326.11.