1st LD Writethru: U.S. stocks rebound amid Yellen's comments, oil recovery

U.S. stocks pared most of early gains to end mildly higher Friday amid surging oil, after U.S. Federal Reserve Chair Janet Yellen reiterated the strength of the country's economy.

By noon, the Dow Jones Industrial Average rose 35.00 points, or 0.20 percent, to 17,576.96. The S&P 500 added 5.69 points, or 0.28 percent, to 2,047.60. The Nasdaq Composite Index edged up 2.32 points, or 0.05 percent, to 4,850.69.

In a panel discussion with three former Fed chairs late Thursday, Yellen said she "certainly wouldn't describe this as a bubble economy," citing a healing labor market and a 5-percent unemployment rate that grabbed the headlines.

The global economy has seen relatively weak growth despite positive signs in the United States, she added.

Meanwhile, New York Fed President William Dudley said early Friday that a cautious and gradual approach to rate hikes is appropriate, citing that risks to the U.S. economy remain tilted to the downside.

Investors were encouraged by a strong rebound in oil prices, which surged about 6 percent Friday on fresh hopes for a proposed freeze in oil production.

Lifted by the spiking oil prices, the energy sector jumped 2.02 percent as the biggest advancer among the S&P 500's ten sectors.

There is no major economic report due out Friday.

Overseas, European equities posted solid gains Friday as oil prices spiked. British benchmark FTSE 100 Index jumped 1.10 percent, while French benchmark index CAC 40 gained 1.35 percent.

In Asia, Chinese stocks continued to slip Friday, adding to recent fluctuations caused by market jitters ahead of the release of economic data scheduled for next week. The benchmark Shanghai Composite Index closed down 0.78 percent at 2,984.96 points.

For the week, all three major indices declined broadly, with the Dow, the S&P 500 and the Nasdaq going down 1.2 percent, 1.2 percent and 1.3 percent, respectively. Endit