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U.S. stocks inch higher after big 2-day rally

Major stock indexes are creeping higher on Friday as the market comes off a massive two-day rally spurred by the Federal Reserve's assurance that it was in no hurry to hike interest rates. The Standard & Poor's 500 index is on pace to close with its second-best weekly gain this year.

KEEPING SCORE: The S&P 500 was up five points, or 0.2 percent, to 2,066 as of 1:40 p.m. Eastern time, extending its weekly gain to 3.2 percent. The Nasdaq composite picked up 11 points, or 0.2 percent, to 4,759, and the Dow Jones industrial average rose 14 points, or 0.1 percent, to 17,792.

SWOOSHED: Nike's stock dropped $2.58, or 3 percent, to $94.50, the biggest drop of any company in the Dow. The maker of athletic apparel posted results that beat Wall Street's forecasts late Thursday, but a drop in orders from Japan and developing markets in Asia overshadowed an otherwise strong quarter.

EUROLAND: Major markets in Europe closed mostly flat. Germany's DAX ended nearly unchanged and France's CAC-40 inched up 0.1 percent. In the U.K., the FTSE 100 index climbed 2 percent.

TURNAROUND: At the start of the week, falling oil prices and the state of the world economy were investors' main worries. A plunge in the Russian ruble didn't help. But stock markets staged a turnaround Wednesday, when Janet Yellen, the Federal Reserve chair, said she saw no reason to hike interest rates in early 2015 and that the central bank would be "patient" in deciding when to raise rates from near zero. Her comments eased concerns that the Fed would start raising rates when economies outside the U.S. have flagged. Traders celebrated, driving the S&P 500 up 4.5 percent over two days.

SWINGS: "It's just crazy volatility," said Jim Paulsen, chief investment strategist and economist at Wells Capital Management. Paulsen pointed to the magnitude of the market's turn. Before the Fed's statement came out on Wednesday, the S&P 500 was down for the week. Two days later, it's headed toward one of its best weeks this year.

ANOTHER TAKE: "The major equity markets are finishing the trading year on a positive note thanks to Janet Yellen's Christmas message," said Neil MacKinnon, global macros strategist at VTB Capital. He said that with no major economic reports coming out, the markets will soon "switch into holiday mode," as traders head off for vacations.

MORE BEATS: Quarterly results from Red Hat, an open-source software company, drove its stock up 11 percent, the biggest gain in the S&P 500. Red Hat reported better earnings and sales than analysts had expected late Thursday. Its stock soared $7.24 to $68.74.

EARNINGS: CarMax jumped 9 percent after the used-car dealership posted a 22 percent surge in its quarterly profits thanks to higher sales. The company's results beat analysts' estimates, sending the stock up $5.79 to $66.31.

ASIA'S DAY: Asian markets pushed higher in the wake of the big gains posted in Europe and the U.S. on Thursday. Japan's Nikkei 225 jumped 2.4 percent, while South Korea's Kospi added 1.7 percent. Hong Kong's Hang Seng advanced 1.3 percent.

ENERGY: Benchmark U.S. crude bounced up from recent lows, climbing $1.81 to $56.19 a barrel on the New York Mercantile Exchange. Crude oil prices had fallen by nearly half since June, when it hit a peak of $107, a result of rising supply and weakening demand.

BONDS: U.S. government bond prices rose, nudging yields down. The yield on the benchmark 10-year Treasury note slipped to 2.18 percent.

CURRENCIES: There was little action in foreign exchange markets, The euro was flat at $1.2273 and the dollar rose 0.2 percent to 119.17 yen.

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