Stocks mixed, but benchmarks up for second week

U.S. stocks ended mixed but posted a second straight week of gains Friday as oil prices basically held steady, China's top central banker eased market fears and a report on U.S. economic growth showed the economy wasn't as weak in the fourth quarter as previously thought.

Up for the day was the Nasdaq composite, which gained 0.2% Down were the Dow Jones industrial average and the S&P 500, which lost 0.3% and 0.2%, respectively. For the blue chips, it was a FF point loss.

All three benchmarks eked out gains for the week, building upon the previous week's positive returns.

After climbing more than 212 points Thursday to close at 16,697.29 — its highest level since the third trading day of the year on Jan. 6 — the Dow Jones industrial average gained about 0.5% at the open, as did the other benchmarks. Stocks turned wobbly later, however, after the release of data on consumer spending — up 0.5% in January, the Commerce Department says — and and the University of Michigan's consumer sentiment index — down slightly.

Oil prices retreat from four-week highs

Hilton Worldwide to spin off two businesses

Stocks' were bolstered by another rally in the oil patch, where a barrel of U.S.-produced crude is up 89 cents, or 2.7%, to $33.96. Rising oil prices is critical to broader financial market stability as it relieves stress in the U.S. energy complex and eases fears of recession.

Comments from China's top central banker, Zhou Xiaochuan, also helped stocks at the open. He said the People's Bank of China still has policy tools at its disposal to combat potential downside risks in the Chinese economy. He also said China would not devalue its currency for competitve purposes.

Also bolstering the market early on was a report from the Commerce Department that the nation's gross domestic product -- a measure of all the goods and services produced in the U.S. economy -- expanded at a seasonally adjusted rate of 1%, above the 0.7% initially estimated and exceeding economists' expectations for a downward revision of 0.4%.

Hilton Worldwide to spin off two businesses

Generally, market fears have subsided and many of the worst-case scenarios laid out by bears, such as a U.S. recession, a too-aggressive Federal Reserve and major fallout from China's slowing economic, seem less dire.

Investors will be closely watching the G20 meeting of the world's 20 major economies in Shanghai, where global leaders will discuss ways to jumpstart weak economic growth around the world.

Shares in Europe were also higher. The broad Stoxx Europe 600 index gained 1.5%, the German DAX ended up 2% and the CAC 40 in Paris gained 1.6%.

Shares rose in Asia. The Nikkei 225 closed up 0.3%, Hong Kong's Hang Seng index gained 2.5% and the Shanghai composite in mainland China closed up nearly 1%.

Adam Shell on Twitter: @adamshell.