* Russell 2000 ends up after near correction territory early
* Dow up 0.3 pct; S&P 500 up 0.4 pct; Nasdaq up 0.5 pct (Updates to close)
By Caroline Valetkevitch
NEW YORK (Frankfurt: HX6.F - news) , May 16 (Reuters) - U.S. stocks ended higher onFriday in a late-day rebound as small-cap names edged up afterrecent weakness and consumer discretionary shares advanced.
The Russell 2000 gained 0.6 percent, recovering afteronce again approaching correction territory, defined as a 10percent drop from a recent high, earlier in the session.
The week has been marked by small-cap weakness, with theRussell index down 0.4 percent for the week. The Dow and the S&P500 also slipped for the week, while the Nasdaq rose.
"The market's held in, and I think technically there's asense it didn't break down. People came in expecting it wasgoing to be another day like yesterday and the fact (is) itdidn't turn out like that at all," said Ken Polcari, director ofthe NYSE floor division at O'Neil Securities in New York.
The S&P 500 climbed back above its 50-day moving averagenear 1,868, an area that has served as support.
Telecom (Frankfurt: NZT.F - news) and consumer discretionary sectors led the S&P 500higher. Shares of Verizon Communications (LSE: VZC.L - news) climbed 2.3percent to $49.07 a day after a regulatory filing showed WarrenBuffett's Berkshire Hathaway (NYSE: BRK-A - news) bought 11 million sharesof Verizon (NYSE: VZ - news) in the first quarter.
The Dow Jones industrial average rose 44.50 points or0.27 percent, to end at 16,491.31. The S&P 500 gained7.01 points or 0.37 percent, to 1,877.86. The Nasdaq Composite added 21.30 points or 0.52 percent, to 4,090.59.
In earnings news, J.C. Penney Co and Nordstrom Inc both jumped a day after posting earnings that exceededforecasts. Nordstrom, up 14.7 percent at $70.55, was the S&P500's biggest percentage gainer. J.C. Penney shot up 16.2percent to $9.73. The S&P consumer discretionaryindex advanced 0.7 percent.
Positioning before options expiration could have added tothe late-day bounce, said Michael James, managing director ofequity trading at Wedbush Securities in Los Angeles
For the week, the Dow fell 0.6 percent, the S&P 500 dipped0.03 percent and the Nasdaq gained 0.5 percent.
Both the Dow and the S&P 500 hit record highs earlier this week. The benchmark S&P 500 is up 1.6 percent for the year.
At the same time, the Russell 2000 remained below its200-day moving average, a sign of weak momentum. Investors haveworried that small-caps' prolonged weakness could be a precursorto broader losses.
Among other upbeat earnings, shares of Applied Materials (NasdaqGS: AMAT - news) jumped 8.1 percent to $20.21 a day after the chip gearmaker reported revenue that slightly exceeded expectations. Autodesk Inc (NasdaqGS: ADSK - news) raised its full-yearrevenue view, sending its stock up 8.1 percent to $51.67.
Economic data added to the positive tone. Housing startsjumping 13.2 percent in April while building permits hit theirhighest in nearly six years. The PHLX housing sector index gained 0.8 percent.
About 5.7 billion shares changed hands on U.S. exchanges,below the 6.1 billion average for the month so far, according todata from BATS Global Markets.
(Reporting by Caroline Valetkevitch; Additional reporting byHerb Lash; Editing by Jan Paschal)
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