Positive economic news lifts stocks

Stocks made modest gains Friday as encouraging signs on the economy overshadowed disappointing earnings from Google and Bank of America.

The Federal Reserve reported that U.S. factories increased production for the ninth straight month.

The Dow Jones industrial average rose 56.68 points, or 0.46 percent, to 12,341.83. The Standard & Poor's 500 index rose 5.16 points, or 0.39 percent, to 1,319.68.

The yield on the 10-year Treasury note fell to 3.41 percent from 3.51 percent late Thursday. Bond yields fall when their prices rise.

The Nasdaq composite gained 4.43, or 0.16 percent, to 2,764.65.

Google Inc. weighed on technology stocks after the company said it missed earnings estimates, due in part to a hiring spree that will last throughout the year. The company fell 8.3 percent.

Bank of America Corp. also missed analyst estimates. The country's largest bank fell 2.4 percent as problems in the bank's mortgage business continued to weigh on its results.

More than two stocks rose for every one that fell on the New York Stock Exchange. ---- AP